Empirical Risk-Return Analysis of Real Estate Investments in the U.S., 1972-1999

Francis, Jack Clark; Ibbotson, Roger G.

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Empirical Risk-Return Analysis of Real Estate Investments in the U.S., 1972-1999

Institutional Investor Journals, Journal of Alternative Investments, 4(1), 2001, 33-39.

7 Pages Posted: 16 Oct 2001 Last revised: 21 Apr 2015

See all articles by Jack Clark Francis

Jack Clark Francis

Zicklin School of Business, Baruch College

Roger G. Ibbotson

Yale School of Management; Zebra Capital Management, LLC

Date Written: Summer 2001

Abstract

This article reviews the empirical risk and return statistics from physical real estate and financial real estate investments made in the U.S. over the period 1972-1999. It includes income, capital appreciation, and total returns from business, residential, and farm real estate, as well as REIT equity and mortgages. These investments are compared to U.S. stocks, bonds, inflation, and other asset categories. The advantages and disadvantages of investing in the real estate are enumerated.

Keywords: Real Estate

JEL Classification: G12, G11, G21, L85

Suggested Citation: Suggested Citation

Francis, Jack Clark and Ibbotson, Roger G., Empirical Risk-Return Analysis of Real Estate Investments in the U.S., 1972-1999 (Summer 2001). Institutional Investor Journals, Journal of Alternative Investments, 4(1), 2001, 33-39., Available at SSRN: https://ssrn.com/abstract=286765