What Causes Home Appreciation?

by | Apr 11, 2023 | Homeowners | 0 comments

depreciation can help homeowners make informed decisions about maintaining and improving their property. Especially if you’re ever planning to sell, stay on top of maintenance to avoid your home depreciating. Here are all of the factors that affect the value of your home. 

Appreciation Factors

Appreciation is the increase in a home’s value over time. Several factors can contribute to a home’s appreciation.

Renovations and upgrades

Homes that have been renovated or upgraded with modern features, such as updated kitchens or bathrooms, new flooring, or energy-efficient windows, tend to appreciate. These upgrades not only improve the home’s functionality and comfort, but also increase its appeal to potential buyers.

Economic factors

Economic conditions, such as low-interest rates or a strong job market, can contribute to a home’s appreciation. When there is more demand for homes, prices tend to rise.


One of the most significant factors in a home’s appreciation is its location. Homes in desirable neighborhoods or areas with good schools, access to public transportation, and other amenities tend to appreciate more quickly than homes in less desirable locations.

Supply and demand

Like any other commodity, the law of supply and demand applies to housing. When there are more buyers than homes available, prices tend to increase. Conversely, when there are more homes on the market than buyers, prices tend to decrease.

Depreciation Factors

Depreciation is the decrease in a home’s value over time. Several factors can contribute to a home’s depreciation.


Just as location can contribute to appreciation, it can also lead to depreciation. Homes located in less desirable neighborhoods, near industrial areas or high-traffic roads, or in areas with high crime rates may depreciate more quickly. 

Lack of maintenance

A home that is not properly maintained can quickly lose value. Leaking roofs, outdated electrical systems, and other problems can turn potential buyers away and decrease the home’s value.

Economic factors

The economy plays a role in the value of your home at the national and local levels. Economic downturns, such as a recession or a housing market crash, can cause home values to depreciate.

Environmental factors 

Homes located in areas prone to natural disasters, such as floods, earthquakes, or wildfires, may experience rapid depreciation.

Want to find out of your home is ready to hit the market? Contact us today!