Abstract:
In this study, we examine the dynamic comovements between housing and
oil market returns in the United States over the period 1859–2013, while controlling
for real gross domestic product growth, inflation, interest rates, and real stock, gold
and silver returns that are known to affect both these markets. As such, we provide a
bird’s-eye view on the interdependencies between these two markets from a historical
perspective. The results of our empirical analysis reveal that comovements between
housing and oil market returns are consistently negative over time, apart from several
recessions the U.S. economy experienced in the 19th century, wherein correlations
were positive.
