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

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

doi:10.1111/1540-6229.12304

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

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

Risk Management

Research output: Contribution to journal › Article › peer-review

1 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 language	English (US)
Pages (from-to)	147-172
Number of pages	26
Journal	Real Estate Economics
Volume	50
Issue number	1
DOIs	https://doi.org/10.1111/1540-6229.12304
State	Published - Mar 1 2022

All Science Journal Classification (ASJC) codes

Accounting
Finance
Economics and Econometrics

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This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1111/1540-6229.12304

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

Abstract

All Science Journal Classification (ASJC) codes

UN SDGs

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