Not really. If you assume a relatively even distribution of the rate at which people sell homes. For example, let's take those 100 people and assume that on average they sell their home every ten years. In any given year, 10 of those people will sell their homes, realising their capital gains. Now, because you have 100 people, the average increase will be divided by 10 (100/10). Which is exactly what you would get if you amortise those capital gains over the ten years. Large numbers of people smooths out lumpiness of individual income.