The Rate of Return on Real Estate: Long-Run Micro-Level Evidence

• 成果类型: Article
• 署名作者: Chambers, David; Spaenjers, Christophe; Steiner, Eva
• 署名单位: University of Cambridge; Centre for Economic Policy Research - UK; Hautes Etudes Commerciales (HEC) Paris; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhab028
• 发表日期: 2021
• 页码: 3572
• 关键词: prices; MARKET; index

摘要

Real estate-housing in particular-is a less profitable investment in the long run than previously thought. We hand-collect property-level financial data for the institutional real estate portfolios of four large Oxbridge colleges over the period 1901-1983. Gross income yields initially fluctuate around 5%, but then trend downward (upward) for agricultural and residential (commercial) real estate. Long-term real income growth rates are close to zero for all property types. Our findings imply annualized real total returns, net of costs, ranging from approximately 2.3% for residential to 4.5% for agricultural real estate.