CAGR (Compound Annual Growth Rate)

CAGR (Compound Annual Growth Rate) is a useful measure of growth over multiple time periods. Think of it as the single annual growth rate that would carry you from a starting value to an ending value, assuming the value compounded over the whole period.

On the new platform, CAGR appears as a time-frame variant on the appreciation indicators (for example, Annual Home Price Appreciation – 2-yr CAGR or 3-yr CAGR). It's especially useful at the ZIP / micro-market level, where small sample sizes create noisy one-year numbers — the multi-year CAGR smooths out that noise so you see the truer relative performance of the micro-market.

Custom Charts PRO showing a home price appreciation series over time, illustrating how a multi-year CAGR smooths short-term noise.
A multi-year CAGR smooths the wild short-term swings you get at the micro-market level, giving a truer read of relative performance over time.