Platform · Glossary
Home price growth.
The percentage change in home values for a geography over a defined period. In the 3Y intake form, the field is described as "Expected annual property value growth used in exit projections." The default is a tract-specific estimate, but you can override with your own assumption.
What 3Y sources this from
- FHFA HPI for metro and state level — the preferred source because of the repeat-sale methodology
- Median sale price changes at finer resolutions where FHFA coverage is sparse
- Local MLS aggregates where available through licensed providers
Each market page lists the source under the benchmark row so readers can verify.
How to read it
A 5% annual price growth in a market with 3% rent growth means the cap rate is compressing — appreciation is outrunning the income side. That's not bad, but it changes the math: you're buying more of your return through appreciation and less through cash flow. Markets where price growth has run hot for several years often show low cap rates and require either a long hold or strong rent growth to work as income properties.
Where it shows up in a 3Y analysis
Home price growth feeds two places: the location score's housing-market category (combined with market hotness, supply constraints, demand pressure, and occupancy) and the exit projections in the report, which year-by-year compound the property's value forward over a 1–15 year window for the equity-multiple and ROI trajectory charts.