Today’s Chart of the Day from ResiClub shows the average 5-year home price return has averaged 26% per state since 1975. This works out to an average of 5.2% a year. The highest at 34% was in California and the lowest at 14% in Oklahoma, with Florida being in the middle at 29%.
Overall, these are solid returns from a generally stable and physical investment we get to use (and often live in); however, it is still short of the 6.5% annual return from bonds and 12% from the stock market over the same time period.