HomeownershipHomebuying Glossary
Appreciation
Also known as Property Appreciation
An increase in a property's value over time.
In plain English
Appreciation is the growth in a home's market value over time, driven by factors like local demand, inflation, and improvements — and it's one of the two main ways homeowners build equity (the other being paying down principal).
Why it matters
Appreciation isn't guaranteed year to year, which is part of why real estate is generally considered a long-term investment rather than a short-term one.
Where you'll run into it
Guides and tools on TheBuyingPath that cover appreciation in context.
Related terms
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