A home generally appreciates in value between 3 and 4 percent each year, but not every home appreciates equally. While every market is different - and appreciation is naturally affected by factors homeowners can’t control - there are
certain home features that create greater appreciation than others. Realtor.com did some research, analyzed millions of listings over the past five years and here’s what they found:
homes are in high demand, especially by millennial, first time buyers. Homes smaller than 1,200 square feet appreciated an average of 7.5% a year for the past five years. Larger homes (more than 2,400 square feet) only rose by 3.8%.
Bedrooms: Two bedrooms
appreciate 6.6% while five bedrooms appreciate just 4.3%.
Floor Plan: Open
floor plans appreciate 7.4% a year - beating out other home features like a patio (6.8%), hardwood floors (5.7%), a fireplace (5.3%) and a finished basement (4.6%).
Style:Modern and contemporary architectural styles appreciate 7.7% a year. Bungalows and traditional homes appreciate at 6.5% and 5.6%, respectively.
Adjacency:Homes overlooking a park appreciate at 7.9% a year, hold value over a longer period of time and recover quickly from a downturn. Homes with mountain views appreciate 5.1% a year, while lake homes appreciate 4.9% annually.