Appreciation is always a guessing game. While the pundits are predicting appreciation for 2014 equal to 2013 (about 12%), we never recommend to our clients that they invest with these figures in mind. Figuring a steady 2.5% - 3% rate of appreciation over the long run is usually a safe assumption. That said, if you are figuring an investment into multi-family housing in the area, we recommend you do not include appreciation when factoring Return on Investment. This way, if there is appreciation you are ahead of the game and, if there is not, you are prepared.