Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329807 
Year of Publication: 
2025
Citation: 
[Journal:] The Journal of Finance [ISSN:] 1540-6261 [Volume:] 80 [Issue:] 5 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2025 [Pages:] 3057-3094
Publisher: 
Wiley, Hoboken, NJ
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. Excess returns outside the large cities can be rationalized as compensation for higher risk, especially higher covariance with income growth and lower liquidity. Real estate in diversified large agglomerations is comparatively safe.
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Creative Commons License: 
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Document Type: 
Article
Document Version: 
Published Version

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