Homeownership is a huge source of wealth creation, enabling current homeowners and succeeding generations to move up the economic ladder. Home prices can fluctuate over time due to factors such as economic health, credit availability and regulatory standards, demographic trends, lifestyle changes, and housing supplies.

Home prices change over time, but are homeowners more likely to gain or lose in home value?

A recent study from NAR analyzes whether homeowners are more likely to experience a home price gain or loss during a period when they hold a home. It estimates a gain or loss arising from changes in the median home prices of single-family homes since 1989 to 2019 over a tenure or holding period of seven, eight, nine, or 10 years in the United States, the four regions, and 177 metro areas (except when the metro areas were formed after 1989).

This study shows that, on average, single-family home prices in the United States increased in value over a tenure period of seven, eight, nine, or 10 years since 1989. The average price appreciation of a single family home ranged from about 29% (seven-year tenure) to 39% (10-year tenure), or average gains of $38,000 to $49,500. this study shows that homeowners are more likely to reap home equity gains when they hold or stay in their home for seven, eight, nine, or 10 years.