Tax Rates and Implicit Rates of Return on Owner-Occupied Single-Family Housing

James R. Webb and Jack H. Rubens
Additional contact information
James R. Webb: Department of Finance College of Business Administration University of Akron Akron, Ohio 44325, http://www.uakron.edu/cba/finance/finance.html
Jack H. Rubens: Department of Finance Cleveland State University Cleveland, Ohio 44115, http://www.csus.edu/sba/

Journal of Real Estate Research, 1987, vol. 2, issue 2, 11-28

Abstract: Private sector investors, as well as public sector policy analysts and consumers, need accurate historical estimates of returns for single-family houses. In addition, researchers need such data to understand capital flows and supply/demand relationships among asset classes. Unfortunately, such estimates have not been available on a comprehensive basis. Each previous study used only a very few samples. This study alleviates these problems by providing returns for single years, and possible holding period, levered (most realistic) and unlevered examples, from appreciation and cash flow separately. It then adjusts each of these for six different tax brackets (0%, 10%, 20%, 30%, 40% and 50%). This should help focus the debate on the "effect of inflation on the demand for housing." The comprehensive rate-of-return information provided here is compared to returns for other assets to determine relative attractiveness. The results obtained indicate generally lower rates of return on owner-occupied, single-family housing than previous studies and a priori expectations.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1987
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://pages.jh.edu/jrer/papers/pdf/past/vol02n02/v02p011.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jre:issued:v:2:n:2:1987:p:11-28

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
http://pages.jh.edu/jrer/about/get.htm

Access Statistics for this article

Journal of Real Estate Research is currently edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323.
Bibliographic data for series maintained by JRER Graduate Assistant/Webmaster ().