Tax Rates and Implicit Rates of Return on Owner-Occupied Single-Family Housing
AbstractPrivate 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.
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Bibliographic InfoArticle provided by American Real Estate Society in its journal Journal of Real Estate Research.
Volume (Year): 2 (1987)
Issue (Month): 2 ()
Contact details of provider:
Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Web page: http://www.aresnet.org/
Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
Find related papers by JEL classification:
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mike Miles & Tom McCue, 1984. "Commercial Real Estate Returns," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 12(3), pages 355-377.
- Waggle, Doug & Johnson, Don T., 2009. "Homeownership and mixed-asset portfolio allocations," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(2), pages 484-500, May.
- James R. Webb & Jack H. Rubens, 1989. ""Tax Rates and Implicit Rates of Return on Owner-Occupied Single-Family Housing:" A Reply," Journal of Real Estate Research, American Real Estate Society, vol. 4(1), pages 85-86.
- Norman G. Miller & Michael A. Sklarz, 1989. "A Comment on "Tax Rates and Implicit Rates of Return on Owner-Occupied Single-Family Housing"," Journal of Real Estate Research, American Real Estate Society, vol. 4(1), pages 81-85.
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