What home prices have actually done since 1987
Price appreciation is only part of the real estate return. Cash flow and leverage are the rest.
A steady, unspectacular climb, with a well-known exception
The S&P Case-Shiller U.S. National Home Price Index, the most widely cited benchmark for nationwide home values, has grown roughly 3.8% a year on average since 1987, or about 2% after inflation. That includes the 2008 housing crash, the sharpest decline in the index's history, and the sharp run-up that followed the 2020 pandemic. On its own, price appreciation is a modest, bond-like return.
Rental income and leverage change the math
A price index measures one thing: what homes sell for. It doesn't capture rental income collected along the way, tax benefits, or the effect of financing a purchase with a mortgage instead of paying cash. Buy a property with 20% down and its price only needs to rise 5% for your equity to grow 25%, which is exactly why that equity, and the mortgage behind it, is worth protecting.
Real estate moves differently than stocks and metals
Home prices don't track the stock market or gold prices closely, which is part of why real estate is a useful third leg alongside precious metals and the broader financial markets, not a substitute for either. But that equity only benefits your family if you're still able to keep the home.
See how affordable protecting your home could be
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