Betting on Homes

Marcel Fischer, Roland Füss, Daniel Ruf, Simon Stehle

Research output: Contribution to conferencePaperResearchpeer-review


In this paper, we analyze the differences in annualized capital gains across heterogeneous investor groups in the US housing market, namely owner-occupiers, private investors, as well as short- and long-term institutional investors. Our empirical results link the performance differences to heterogeneity in risk-taking. In particular, investor-specific exposure to lagged local return dispersion explains persistent performance differences of investors within a given market. Short-term institutional investors outperform others by exploiting the upside potential of local return dispersion. By contrast, neither macroeconomic fundamentals nor local factors, such as momentum, liquidity, and downside risk, can explain the observed performance disparities.
Original languageEnglish
Publication date2023
Number of pages46
Publication statusPublished - 2023
EventASSA 2023 Annual Meeting - Hilton Riverside, New Orleans, United States
Duration: 6 Jan 20238 Jan 2023


ConferenceASSA 2023 Annual Meeting
LocationHilton Riverside
Country/TerritoryUnited States
CityNew Orleans
Internet address


  • Capital gains
  • Housing market
  • Institutional investors
  • Local markets
  • Risk exposure
  • Upside potential

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