Abstract: We conducted a comprehensive analysis of global data on actual housing prices, real estate investment, the number of newly started housing projects, and housing sales before and after 22 instances of real estate bubble bursts since 1970 to observe the changes in real estate markets following the bursting of real estate bubbles. The data revealed a long-tail feature: First, real estate markets take a considerable amount of time to recover after a crisis. On average, key indicators begin to rebound only after about 7 years, and within the following 10 years, they do not return to pre-crisis levels. Second, the impact of real estate crises on markets is profound. After the crisis, the maximum declines in housing prices, real estate investment, housing sales, and the number of newly started housing projects are 30%, 25%, 35%, and 60%, respectively. The real estate market, driven primarily by demand after the crisis, does not experience a price rebound despite decreases in sales and new construction. Third, Japan's real estate crisis is not representative and differs significantly from other real estate crises. Following the 1990 real estate crisis in Japan, the decline in various indicators was milder, but the downward trend persisted for a longer duration compared to other crises.
