The experience of the 1985-93 boom/bust in real estate has left industry players nervous about when it might happen again. This paper examines the possible causes and the periodicity of such major real estate cycles. A search of the literature for return evidence from this century suggests that...

Traditionally, asset allocation involves efficient frontiers of forecasted returns and risks. The known limitations to this approach involve the non-normality of real estate return distributions, the definition of volatility in appraisal-based returns and the sluggish liquidity in real estate....