What happens during flight to safety: Evidence from public and private real estate markets

Walter I. Boudry, Robert A. Connolly, Eva Steiner

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

Little is known about the performance of public and private real estate investments during and after flight to safety (FTS). We document that public real estate securities offer a partial hedge during FTS events. In addition, periods with multiple FTS events forecast slower economic growth, resulting in weaker long-run investment performance of real estate assets. Following FTS, the probability of a drop in real estate cash flows increases by up to 20%, with quarterly cash flow growth rates declining by as much as 27%. Private market real estate price appreciation over the four quarters following FTS is nearly wiped out.

Original languageEnglish (US)
JournalReal Estate Economics
DOIs
StateAccepted/In press - 2019

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'What happens during flight to safety: Evidence from public and private real estate markets'. Together they form a unique fingerprint.

Cite this