## Figure 3.2.2. Predictability of Returns on Housing and Capital Account Openness

## Source details

**Canonical URL:** [Figure 3.2.2. Predictability of Returns on Housing and Capital Account Openness](https://www.imf.org/-/media/files/publications/gfsr/2018/april/chapter-3/pdf/boxfigure3-2-2.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2018/april/chapter-3/pdf/boxfigure3-2-2.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2018/april/chapter-3/pdf/boxfigure3-2-2.pdf.json)

---

### Summary of chart content
- Chart relationship: Predictability of housing returns (R²) plotted against Capital account openness.
- Y-axis ticks: 0.0, 0.2, 0.4, 0.6, 0.8, 1.0
- X-axis ticks: 0.5, 1.0, 1.5, 2.0, 2.5
- Label shown on chart: R²

### Note on measurement
- The y-axis shows the R² from the housing return forecasting equation, which measures the proportion of variance in the future housing return nine years ahead explained by the current price-to-rent ratio.

### Data sources
- Chinn and Ito (2006)
- IMF staff estimates

*Source: Chinn and Ito (2006); and IMF staff estimates.*

---


_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/april/chapter-3/pdf/boxfigure3-2-2.pdf_