This research investigates integration between housing and stock markets across 11 countries. Using total return indices over 1870 to 2015, results around the globe consistently show that stock and housing markets are integrated with a bilateral causal relationship. Our results have important implications for portfolio diversification strategy and capital-switching effect hypothesis.
Lin, Pin-Te, and Ivelin Stankov. "Dynamic Relationship between Housing and Stock Markets: International Evidence over 1870 to 2015." In 29th Annual European Real Estate Society Conference. ERES: Conference. London, United Kingdom, 2023.
Section: Housing