Buy vs rent tool
Future home value: price growth and inflation
Future home value is the biggest unknown in buy vs rent. Project it under several growth rates, and see what each is worth in today’s dollars after inflation.
Nominal versus real growth
A home that grows 3% a year when inflation is 2% grows about 1% in real terms. Comparing nominal home values with real rents or incomes can mislead, so the calculator shows both.
Questions people ask
What growth rate should I use?
There is no single right number. Test a low, a middle and a high case, including zero.
How does leverage change the return?
With 20% down, a 3% rise in the home’s value is a 15% gain on the down payment before costs.
Why show real values?
Because a dollar in 20 years buys less than a dollar today.
Educational estimates based on your inputs; not advice. See the methodology and assumptions.