I just read an interesting article stating that many potential first time home buyers are deciding to continue to rent because home appreciation is less than 10% per year. The author included the following chart, which shows very clearly that even with 4% appreciation over 5 years, the home owner would end up with a nice chunk of equity, especially compared to the goose egg with renting.
| Date | 1/1/2015 | 1/1/2016 | 1/1/2017 | 1/1/2018 | 1/1/2019 | 1/1/2020 | |
| Purchase Price | $175,000 | Future Value @ 4% Annual Appreciation | $182,000 | $189,280 | $196,851 | $204,725 | $212,914 |
| 3.5% Down Payment | $ 6,125 | Beginning Loan Balance @ 4% Interest | $166,153 | $163,069 | $159,858 | $156,517 | $153,039 |
| Loan Amount | $168,875 | Net Equity | $15,847 | $26,211 | $36,993 | $48,208 | $59,875 |