Inflation protection from home-ownership: Long-run evidence

Dirk Brounen, P. Eichholtz, S. Staetmans, Marcel Theebe

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This article examines the inflation hedging capacity of the private home. We employ unique long-term data for inflation, house price dynamics and rents for Amsterdam dating back to 1814, allowing us to study total housing returns in different inflation regimes and for varying investment horizons. Our Amsterdam data show that homeownership's protection against actual and expected inflation increases with the investment horizon. This increase is especially strong for horizons up to 10 years. Inflation protection from housing is stronger when inflation is persistent, and the hedging capacities of housing regarding unexpected inflation are weak.
Original languageEnglish
Pages (from-to)662-689
JournalReal Estate Economics
Volume42
Issue number3
DOIs
Publication statusPublished - 2014

Fingerprint

Home ownership
Inflation
Investment horizon
Hedging
House prices
Price dynamics
Expected inflation
Rent

Cite this

Brounen, Dirk ; Eichholtz, P. ; Staetmans, S. ; Theebe, Marcel. / Inflation protection from home-ownership : Long-run evidence. In: Real Estate Economics. 2014 ; Vol. 42, No. 3. pp. 662-689.
@article{0c65225762d649169a42ecae0934d901,
title = "Inflation protection from home-ownership: Long-run evidence",
abstract = "This article examines the inflation hedging capacity of the private home. We employ unique long-term data for inflation, house price dynamics and rents for Amsterdam dating back to 1814, allowing us to study total housing returns in different inflation regimes and for varying investment horizons. Our Amsterdam data show that homeownership's protection against actual and expected inflation increases with the investment horizon. This increase is especially strong for horizons up to 10 years. Inflation protection from housing is stronger when inflation is persistent, and the hedging capacities of housing regarding unexpected inflation are weak.",
author = "Dirk Brounen and P. Eichholtz and S. Staetmans and Marcel Theebe",
year = "2014",
doi = "10.1111/1540-6229.12023",
language = "English",
volume = "42",
pages = "662--689",
journal = "Real Estate Economics",
issn = "1080-8620",
publisher = "Wiley-Blackwell",
number = "3",

}

Inflation protection from home-ownership : Long-run evidence. / Brounen, Dirk; Eichholtz, P.; Staetmans, S.; Theebe, Marcel.

In: Real Estate Economics, Vol. 42, No. 3, 2014, p. 662-689.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Inflation protection from home-ownership

T2 - Long-run evidence

AU - Brounen, Dirk

AU - Eichholtz, P.

AU - Staetmans, S.

AU - Theebe, Marcel

PY - 2014

Y1 - 2014

N2 - This article examines the inflation hedging capacity of the private home. We employ unique long-term data for inflation, house price dynamics and rents for Amsterdam dating back to 1814, allowing us to study total housing returns in different inflation regimes and for varying investment horizons. Our Amsterdam data show that homeownership's protection against actual and expected inflation increases with the investment horizon. This increase is especially strong for horizons up to 10 years. Inflation protection from housing is stronger when inflation is persistent, and the hedging capacities of housing regarding unexpected inflation are weak.

AB - This article examines the inflation hedging capacity of the private home. We employ unique long-term data for inflation, house price dynamics and rents for Amsterdam dating back to 1814, allowing us to study total housing returns in different inflation regimes and for varying investment horizons. Our Amsterdam data show that homeownership's protection against actual and expected inflation increases with the investment horizon. This increase is especially strong for horizons up to 10 years. Inflation protection from housing is stronger when inflation is persistent, and the hedging capacities of housing regarding unexpected inflation are weak.

U2 - 10.1111/1540-6229.12023

DO - 10.1111/1540-6229.12023

M3 - Article

VL - 42

SP - 662

EP - 689

JO - Real Estate Economics

JF - Real Estate Economics

SN - 1080-8620

IS - 3

ER -