Single-Family Housing and Wealth Portfolios

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Gustav D. Jud, Retired (Creator)
Tony R. Wingler (Creator)
Daniel T. Winkler, Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
Web Site:

Abstract: This paper explores the risk and return of a portfolio of single-family housing during 1978:1-2001:4 in the context of a portfolio of financial assets. Homeownership offers higher returns to those who have higher tax brackets, longer investment horizons and use more financial leverage. Housing returns are positively correlated with large-stock returns and negatively correlated with returns on small stocks and debt securities. Portfolio allocation to housing is large in a minimum variance portfolio, and it increases with longer holding periods and higher tax brackets. Homeownership risk and return vary widely among the forty-two MSAs studied, and within an MSA, housing returns exhibit substantial variation.

Additional Information

Journal of Real Estate Portfolio Management, vol. 12, no. 1, 2006, pp. 13-22.
Language: English
Date: 2006
Finance, Real estate, Risk/reward, Wealth, Investment return

Email this document to