Investors in the housing market
Type
conference paper
Date Issued
2021
Author(s)
Abstract
In this paper, we analyze the sizable and systematic differences in annualized capital gains across investor groups in the US housing market. Using data on more than 21 million repeat sales, we investigate the performance of highly heterogeneous buyers: owner-occupiers, private, short-term, and long-term investors. Our results link the differences in capital gains to heterogeneous risk-taking. Investor-specific exposure to lagged local return risk explains a sizable and persistent share of investors' high capital gains. In contrast, neither location choice nor temporal factors on the local or aggregate level, respectively, can help explain investors' outperformance.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SOF - System-wide Risk in the Financial System
Event Title
27th Annual Meeting of the German Finance Association (DGF)
Event Location
Innsbruck
Event Date
01 Oktober 2021
Contact Email Address
roland.fuess@unisg.ch
Eprints ID
264672