Theoretically, the market portfolio, which is the efficient portfolio according to Modern Portfolio Theory should replicate the world’s assets weighted by value. For America, household (and non-profit) net worth is ~$85T and the value of real estate holdings is ~$14T (value less mortgages) (source), so about 16% is pretty justifiable. This is all pretty back of the envelope though.
Theoretically, the market portfolio, which is the efficient portfolio according to Modern Portfolio Theory should replicate the world’s assets weighted by value. For America, household (and non-profit) net worth is ~$85T and the value of real estate holdings is ~$14T (value less mortgages) (source), so about 16% is pretty justifiable. This is all pretty back of the envelope though.