Figure 3.2.1. Housing Return Predictability,,,,,,,,,,
"Source: IMF staff estimates.
Note: The forecasting equation uses the current price-to-rent ratio to predict future capital gains in housing assets. The y?axis in this figure is the R2 from the forecasting equation, that is, the proportion of variance in the future housing return explained by the current price-to-rent ratio. The forecasting horizon ranges from 1 year to 10 years. The median R2 among countries in the sample is plotted in this figure.",,,,,,,,,,
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Year,1,2,3,4,5,6,7,8,9,10
Median R2,0.006,0.019,0.040,0.059,0.083,0.126,0.162,0.177,0.187,0.181