Superstar Returns

Francisco Amaral (), Martin Dohmen (), Sebastian Kohl and Moritz Schularick
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Francisco Amaral: Universität Bonn = University of Bonn
Martin Dohmen: Universität Bonn = University of Bonn

SciencePo Working papers Main from HAL

Abstract: We study long-term returns on residential real estate in twenty-seven "superstar" cities in fifteen countries over 150 years. We find that total returns in superstar cities are close to 100 basis points lower per year than in the rest of the country. House prices tend to grow faster in the superstars, but rent returns are substantially greater outside the big agglomerations, resulting in higher long-run total returns. The excess returns outside the superstars can be rationalized as a compensation for risk, especially for higher covariance with income growth and lower liquidity. Superstar real estate is comparatively safe.

Keywords: Housing returns; Housing risk; Superstar cities; Regional housing markets (search for similar items in EconPapers)
Date: 2021-12
New Economics Papers: this item is included in nep-rmg and nep-ure
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Related works:
Working Paper: Superstar Returns (2021)
Working Paper: Superstar Returns (2021)
Working Paper: Superstar Returns (2021)
Working Paper: Superstar Returns (2021)
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