Superstar Returns

Moritz Schularick, Francisco Amaral, Sebastian Kohl and Martin Dohmen

No 16806, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper makes the first comprehensive attempt to study within-country heterogeneity of housing returns. We introduce a new city-level data set covering 15 OECD countries over 150 years and show that national housing markets are characterized by systematic spatial variation in housing returns. Total returns in large agglomerations are close to 100 basis points lower per year than in other parts of the same country. The excess returns outside the large cities can be rationalized as a compensation for higher risk, especially higher co-variance with income growth and lower liquidity. Real estate in diversified large agglomerations is comparatively safe.

Keywords: Asset returns; Housing risk; Superstar cities; Regional housing markets (search for similar items in EconPapers)
JEL-codes: G10 G12 N90 R21 R31 (search for similar items in EconPapers)
Date: 2021-12
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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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