capital gains only comes into play if you did not live in the house for two of the last five years you own it. Anyone who actually lives in their house does not have to worry about that. Property taxes are a major expense. One thing I see with people who have not owned real estate is they think a paid off house has no expenses but the taxes, insurance, and if you have something with an association (often times the only affordable option in metro area) and you still have a monthly nut. Its a bit lower but not static because all three of those things are as effected by inflation as anything else.