Executive Summary. This study analyzes the tenure choice of investors dealing with small residential investment properties. Employing a unique dataset drawn from sales of apartment buildings of between 5 and 20 units over a 21-year period from 1970 to 1990 in the city of San Diego, it is found that the average holding period is just under five years. Also, it appears that few, if any, property characteristics influence the holding period but that frequency of turnover of specific properties is a function of these characteristics. Finally, the data leads to the interesting conclusion that investors hold property shorter when its value is rising faster than its rent.
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Brown et al. (2005) studied this question.
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