AVERAGE ANNUAL APPRECIATION BY STATE HOUSING PRICE INDEX 1975-2013
The Map and mini charts below are color coordinated by Census Division. The figures evidence the average annual rate of increase in the HPI (Housing Price Index) per division and the average first year rate of return on a 20% down payment. The actual rate of return on the purchase of real estate will vary with many factors. This ROR calculation is simplified and designed to show the benefit that can often exist by the use of leverage (financing) a purchase vs. paying cash. Taxes, insurance, maintenance and interest expense must all be considered as well, yet currently, these expenses are often less than the cost of renting a similar home and accordingly, can often cancel one another out.