Dollar Stretcher has a new article about "two stepping," the tax-free capital gain you get from selling your home after two years of residence.
This practice has funded my family's retirement account and propelled us from a marginal neighborhood into a safe, suburban one.
I agree with the author's point that moving every two years, while difficult, is a sure-fire way to pare excess clutter. (One reason I have only a small home library now!)
One thing we are NOT trying to do is keep escalating in neighborhood. Even though the potential returns are greater, the more expensive home includes higher maintenance costs, higher property taxes, and higher real estate commission fees.
Our goal is to keep moving within the affordable level of neighborhoods, investing some profits for retirement and rolling some profit into the next buy. Eventually we will buy a final home with equity alone.
Let's hope so, anyway!