Friday, January 22, 2010

The Herengracht Index

In 1997, Piet M.A. Eichholtz of Maastricht University in the Netherlands published an influential paper entitled “A Long Run House Price Index: The Herengracht Index, 1628 – 1973” within which was compiled a 345 year hedonic repeat-sale (similar to Case-Shiller) index constructed using a single canal district of Amsterdam.

Additionally, Eichholtz supplied the index in both nominal and “real” (inflation adjusted) terms resulting in probably the most striking outcome of the entire body of research.

Looking at the charts below (click for ultra-dynamic zoomable version) you can see that while in nominal terms home prices experienced various large run-ups, particularly after 1900, in “real” terms housing experienced little to no appreciation.

NOTE: due to a technical glitch all series hosted in the charts below cover the range from 1753 to 1973 as opposed to 1628. The full dataset can be downloaded here.



This study offers solid evidence that although within a single lifespan housing prices may fluctuate dramatically and even present periods where prices appear to climb without end, in the long run, prices stay, more or less, in-line with general price and wage inflation.

12 comments:

  1. one of the best landmark there.

    ReplyDelete
  2. free to post classified ad posting blogging and backlinks creater websites and blog commenting websites

    www.m11.in
    www.classified.m11.in
    www.classifieds.m11.in
    www.blog.m11.in
    www.backlinks.m11.in
    www.m11in.blogspot.com/

    ReplyDelete
  3. Such a nice post, I enjoyed it a lot! I like your sense of style! Wonderful photos!

    Buy RS Gold
    Cheap RS Gold

    ReplyDelete
  4. I liked your article, I will share your article to everyone!!




    GW2 Gold|Guild Wars 2 Gold|Buy GW2 Gold|RS gold

    ReplyDelete
  5. SVinfra is India's most recognized Luxury Real Estate Brand, and is responsible for many of South India's most recognized developments. Superior Quality, Attention to Detail and Perfection are the standards that SV infra demands throughout its projects - from Homes to Hotel and from Office Buildings to Shopping Malls.3 BHK flats for sale at kanakapura Road, 2 BHK flats for sale at kanakapura Road, Villas for sale at Attibele, Plots for Sale at Anekal,1 BHK flats for sale at Chandapura, 2 BHK flats for Sale at Chandapura, 2 BHK Flats for sale at Chandapura,3 BHK Flats for sale at Chandapura, 2 & 3 BHK flats for sale at kanakapura Road, 2 & 3 BHK flats for sale at South Bangalore

    For more Info Visit us : http://svinfra.in/

    ReplyDelete
  6. Shivaganga Infra is the name of luxury and happiness.The name for commitment to customer satisfaction was established in the year 2006 at Bangalore. It isconsistently been making a name in the field of construction. The company is let by a team of experience and visionary professionals with sound knowledge of construction, Team SHIVAGANGA INFRA is professionally managed with high experienced of proven capabilities.Behind some of the most prestigious ventures of Bangalore stands one trusted name-SHIVAGANGA INFRA.3Bhk flats for sale At Kanakapura Road, 2Bhk flats for sale At Kanakapura Road, 3Bhk flats for sale At JP Nagar7th Phase, 2Bhk flats for sale At JP Nagar7th Phase,3Bhk flats for sale At JP Nagar, 2Bhk flats for sale At JP Nagar,3Bhk flats for sale At Bannerghatta Road,2Bhk flats for sale At Bannerghatta Road,3Bhk flats for sale At Rajarajeshwari Nagar,2Bhk flats for sale At Rajarajeshwari Nagar,3Bhk flats for sale At Banashankari 2nd stage,3Bhk flats for sale At Bangalore,2Bhk flats for sale At Bangalore.

    For More Info Visit Us : http://shivagangainfra.in/

    ReplyDelete
  7. SVinfra is India's most recognized Luxury Real Estate Brand, and is responsible for many of South India's most recognized developments. Superior Quality, Attention to Detail and Perfection are the standards that SV infra demands throughout its projects - from Homes to Hotel and from Office Buildings to Shopping Malls.3 BHK flats for sale at kanakapura Road, 2 BHK flats for sale at kanakapura Road, Villas for sale at Attibele, Plots for Sale at Anekal,1 BHK flats for sale at Chandapura, 2 BHK flats for Sale at Chandapura, 2 BHK Flats for sale at Chandapura,3 BHK Flats for sale at Chandapura, 2 & 3 BHK flats for sale at kanakapura Road, 2 & 3 BHK flats for sale at South Bangalore

    For more Info Visit us : http://svinfra.in/

    ReplyDelete
  8. SVinfra is India's most recognized Luxury Real Estate Brand, and is responsible for many of South India's most recognized developments. Superior Quality, Attention to Detail and Perfection are the standards that SV infra demands throughout its projects - from Homes to Hotel and from Office Buildings to Shopping Malls.3 BHK flats for sale at kanakapura Road, 2 BHK flats for sale at kanakapura Road, Villas for sale at Attibele, Plots for Sale at Anekal,1 BHK flats for sale at Chandapura, 2 BHK flats for Sale at Chandapura, 2 BHK Flats for sale at Chandapura,3 BHK Flats for sale at Chandapura, 2 & 3 BHK flats for sale at kanakapura Road, 2 & 3 BHK flats for sale at South Bangalore

    For more Info Visit us : http://svinfra.in/

    ReplyDelete
  9. SVinfra is India's most recognized Luxury Real Estate Brand, and is responsible for many of South India's most recognized developments. Superior Quality, Attention to Detail and Perfection are the standards that SV infra demands throughout its projects - from Homes to Hotel and from Office Buildings to Shopping Malls.

    For more Info Visit us : http://svinfra.in/

    ReplyDelete
  10. Shivaganga Infra is the name of luxury and happiness.The name for commitment to customer satisfaction was established in the year 2006 at Bangalore. It isconsistently been making a name in the field of construction. The company is let by a team of experience and visionary professionals with sound knowledge of construction, Team SHIVAGANGA INFRA is professionally managed with high experienced of proven capabilities.Behind some of the most prestigious ventures of Bangalore stands one trusted name-SHIVAGANGA INFRA.3Bhk flats for sale At Kanakapura Road, 2Bhk flats for sale At Kanakapura Road, 3Bhk flats for sale At JP Nagar7th Phase, 2Bhk flats for sale At JP Nagar7th Phase,3Bhk flats for sale At JP Nagar, 2Bhk flats for sale At JP Nagar, Bangalore.

    For More Info Visit Us : http://shivagangainfra.in/

    ReplyDelete
  11. 3Bhk flats for sale At Kanakapura Road, 2Bhk flats for sale At Kanakapura Road, 3Bhk flats for sale At JP Nagar7th Phase, 2Bhk flats for sale At JP Nagar7th Phase,3Bhk flats for sale At JP Nagar, 2Bhk flats for sale At JP Nagar,3Bhk flats for sale At Bannerghatta Road,2Bhk flats for sale At Bannerghatta Road,3Bhk flats for sale At Rajarajeshwari Nagar,2Bhk flats for sale At Rajarajeshwari Nagar,3Bhk flats for sale At Banashankari 2nd stage,3Bhk flats for sale At Bangalore,2Bhk flats for sale At Bangalore.

    For More Info Visit Us : http://shivagangainfra.in/

    ReplyDelete