IDEAS home Printed from https://ideas.repec.org/a/eee/jhouse/v46y2019ics1051137718302651.html
   My bibliography  Save this article

The effect of asylum seeker reception centers on nearby house prices: Evidence from The Netherlands

Author

Listed:
  • Daams, Michiel N.
  • Proietti, Paola
  • Veneri, Paolo

Abstract

With 20,945 asylum applications in 2016, the Netherlands received the tenth highest number of asylum requests in Europe. From the time of their arrival, and until a decision on their asylum requests is made, asylum seekers are sheltered in asylum seeker reception centers (ASRCs) across the country. This paper tests whether the opening of reception centers affects the prices of nearby houses. In doing so, likely differential effects across urban and non-urban areas, as well as for ASRCs of distinct capacities to host asylum seekers, are considered. The analysis uses hedonic regressions that are based on a staggered difference-in-differences design. Estimation comes from 2009–2017 information on the transaction prices of houses (N = 347,479) and the locations and opening dates of nearby ASRCs (N = 75). The results indicate that the opening of ASRCs causes the prices of some houses to fall by approximately 9.3%. However, this estimated effect pertains solely to single-family houses in less densely populated areas and for ASRC of high hosting capacity, whereas in cities no economically or statistically significant effects are found. The findings of this study have implications for the design of public policies that regard the spatial dispersion of ASRCs.

Suggested Citation

  • Daams, Michiel N. & Proietti, Paola & Veneri, Paolo, 2019. "The effect of asylum seeker reception centers on nearby house prices: Evidence from The Netherlands," Journal of Housing Economics, Elsevier, vol. 46(C).
    • Handle: RePEc:eee:jhouse:v:46:y:2019:i:c:s1051137718302651
    DOI: 10.1016/j.jhe.2019.101658
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1051137718302651
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jhe.2019.101658?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Badarinza, Cristian & Ramadorai, Tarun, 2018. "Home away from home? Foreign demand and London house prices," Journal of Financial Economics, Elsevier, vol. 130(3), pages 532-555.
    2. Libertad Gonzalez & Francesc Ortega, 2013. "Immigration And Housing Booms: Evidence From Spain," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 37-59, February.
    3. Masood Gheasi & Peter Nijkamp, 2017. "A Brief Overview of International Migration Motives and Impacts, with Specific Reference to FDI," Economies, MDPI, vol. 5(3), pages 1-11, August.
    4. Stephen Gibbons & Henry G. Overman, 2012. "Mostly Pointless Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 172-191, May.
    5. Friso de Vor & Henri de Groot, 2011. "The Impact of Industrial Sites on Residential Property Values: A Hedonic Pricing Analysis from the Netherlands," Regional Studies, Taylor & Francis Journals, vol. 45(5), pages 609-623.
    6. Saiz, Albert, 2007. "Immigration and housing rents in American cities," Journal of Urban Economics, Elsevier, vol. 61(2), pages 345-371, March.
    7. Farber, Stephen, 1998. "Undesirable facilities and property values: a summary of empirical studies," Ecological Economics, Elsevier, vol. 24(1), pages 1-14, January.
    8. David Card, 1990. "The Impact of the Mariel Boatlift on the Miami Labor Market," ILR Review, Cornell University, ILR School, vol. 43(2), pages 245-257, January.
    9. Facchini, Giovanni & Margalit, Yotam & Nakata, Hiroyuki, 2022. "Countering public opposition to immigration: The impact of information campaigns," European Economic Review, Elsevier, vol. 141(C).
    10. Christian Dustmann & Kristine Vasiljeva & Anna Piil Damm, 2019. "Refugee Migration and Electoral Outcomes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(5), pages 2035-2091.
    11. Accetturo, Antonio & Manaresi, Francesco & Mocetti, Sauro & Olivieri, Elisabetta, 2014. "Don't stand so close to me: The urban impact of immigration," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 45-56.
    12. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2022. "(The Struggle for) Refugee integration into the labour market: evidence from Europe [Cashier or consultant? Entry labor market conditions, field of study, and career success]," Journal of Economic Geography, Oxford University Press, vol. 22(2), pages 351-393.
    13. Sanchis-Guarner, Rosa, 2023. "Decomposing the impact of immigration on house prices," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    14. Bellettini, Giorgio & Kempf, Hubert, 2013. "Why not in your backyard? On the location and size of a public facility," Regional Science and Urban Economics, Elsevier, vol. 43(1), pages 22-30.
    15. Sona Kalantaryan, 2013. "Housing Market Responses to Immigration; Evidence from Italy," RSCAS Working Papers 2013/83, European University Institute.
    16. van Ommeren, Jos & Wentink, Derk & Dekkers, Jasper, 2011. "The real price of parking policy," Journal of Urban Economics, Elsevier, vol. 70(1), pages 25-31, July.
    17. Barone, Guglielmo & D'Ignazio, Alessio & de Blasio, Guido & Naticchioni, Paolo, 2016. "Mr. Rossi, Mr. Hu and politics. The role of immigration in shaping natives' voting behavior," Journal of Public Economics, Elsevier, vol. 136(C), pages 1-13.
    18. Ugo Fratesi & Marco Percoco & Paola Proietti, 2019. "Who welcomes them? Determinants of the spatial distribution of asylum seekers in Italy," Regional Studies, Taylor & Francis Journals, vol. 53(1), pages 118-130, January.
    19. Brookshire, David S, et al, 1982. "Valuing Public Goods: A Comparison of Survey and Hedonic Approaches," American Economic Review, American Economic Association, vol. 72(1), pages 165-177, March.
    20. Michiel N. Daams & Frans J. Sijtsma & Arno J. van der Vlist, 2016. "The Effect of Natural Space on Nearby Property Prices: Accounting for Perceived Attractiveness," Land Economics, University of Wisconsin Press, vol. 92(3), pages 389-410.
    21. Pope, Devin G. & Pope, Jaren C., 2015. "When Walmart comes to town: Always low housing prices? Always?," Journal of Urban Economics, Elsevier, vol. 87(C), pages 1-13.
    22. Heike Delfmann & Sierdjan Koster & Philip McCann & Jouke Van Dijk, 2014. "Population Change and New Firm Formation in Urban and Rural Regions," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 1034-1050, June.
    23. Monnet, Eric & Wolf , Clara, 2017. "Demographic cycles, migration and housing investment," Journal of Housing Economics, Elsevier, vol. 38(C), pages 38-49.
    24. Andreas Steinmayr, 2016. "Exposure to Refugees and Voting for the Far-Right. (Unexpected) Results from Austria," WIFO Working Papers 514, WIFO.
    25. Leah Brooks & Byron Lutz, 2019. "Vestiges of Transit: Urban Persistence at a Microscale," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 385-399, July.
    26. Guo, Xiaoyang & Zheng, Siqi & Geltner, David & Liu, Hongyu, 2014. "A new approach for constructing home price indices: The pseudo repeat sales model and its application in China," Journal of Housing Economics, Elsevier, vol. 25(C), pages 20-38.
    27. Graves, Philip E., 1983. "Migration with a composite amenity: the role of rents," MPRA Paper 19917, University Library of Munich, Germany.
    28. Otto, Alkis Henri & Steinhardt, Max Friedrich, 2014. "Immigration and election outcomes — Evidence from city districts in Hamburg," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 67-79.
    29. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-161, April.
    30. Crawley, Heaven & Drinkwater, Stephen & Kauser, Rukhsana, 2013. "Regional Variations in Attitudes Towards Refugees: Evidence from Great Britain," IZA Discussion Papers 7647, Institute of Labor Economics (IZA).
    31. Christopher Carpenter & Carlos Dobkin, 2011. "The Minimum Legal Drinking Age and Public Health," Journal of Economic Perspectives, American Economic Association, vol. 25(2), pages 133-156, Spring.
    32. van Duijn, Mark & Rouwendal, Jan & Boersema, Richard, 2016. "Redevelopment of industrial heritage: Insights into external effects on house prices," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 91-107.
    33. Xiaolong Liu, 2013. "Spatial and Temporal Dependence in House Price Prediction," The Journal of Real Estate Finance and Economics, Springer, vol. 47(2), pages 341-369, August.
    34. Marcos Diaz Ramirez & Thomas Liebig & Cécile Thoreau & Paolo Veneri, 2018. "The integration of migrants in OECD regions: A first assessment," OECD Regional Development Working Papers 2018/01, OECD Publishing.
    35. Daams, Michiel N. & Sijtsma, Frans J. & Veneri, Paolo, 2019. "Mixed monetary and non-monetary valuation of attractive urban green space: A case study using Amsterdam house prices," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    36. repec:ces:ifodic:v:13:y:2016:i:4:p:19189885 is not listed on IDEAS
    37. Albert Saiz, 2003. "Room in the Kitchen for the Melting Pot: Immigration and Rental Prices," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 502-521, August.
    38. Barrett A. Slade, 2018. "Big†Box Stores and Urban Land Prices: Friend or Foe?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 46(1), pages 7-58, March.
    39. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    40. Daniel Leithold, 2016. "Asylum in Europe," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(4), pages 55-58, 02.
    41. Alan T. Murray & Richard L. Church & Ross A. Gerrard & Wing‐Sing Tsui, 1998. "Impact Models For Siting Undesirable Facilities," Papers in Regional Science, Wiley Blackwell, vol. 77(1), pages 19-36, January.
    42. Steven Bourassa & Eva Cantoni & Martin Hoesli, 2007. "Spatial Dependence, Housing Submarkets, and House Price Prediction," The Journal of Real Estate Finance and Economics, Springer, vol. 35(2), pages 143-160, August.
    43. Bratti, Massimiliano & Deiana, Claudio & Havari, Enkelejda & Mazzarella, Gianluca & Meroni, Elena Claudia, 2017. "What Are You Voting For? Proximity to Refugee Reception Centres and Voting in the 2016 Italian Constitutional Referendum," IZA Discussion Papers 11060, Institute of Labor Economics (IZA).
    44. Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2010. "Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities?," Journal of Environmental Economics and Management, Elsevier, vol. 60(3), pages 145-160, November.
    45. Schwartz, Amy Ellen & Ellen, Ingrid Gould & Voicu, Ioan & Schill, Michael H., 2006. "The external effects of place-based subsidized housing," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 679-707, November.
    46. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    47. Bansak, Kirk & Hainmueller, Jens & Hangartner, Dominik, 2016. "How economic, humanitarian, and religious concerns shape European attitudes toward asylum seekers," LSE Research Online Documents on Economics 67898, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Trojanek, Radoslaw & Gluszak, Michal, 2022. "Short-run impact of the Ukrainian refugee crisis on the housing market in Poland," Finance Research Letters, Elsevier, vol. 50(C).
    2. Martijn I Dröes & Hans R A Koster, 2023. "A world divided: refugee centers, house prices and household preferences," Journal of Economic Geography, Oxford University Press, vol. 23(1), pages 51-90.
    3. Marius Brülhart & Gian-Paolo Klinke & Andrea Marcucci & Dominic Rohner & Mathias Thoenig, 2023. "Price and Prejudice: Housing Rents Reveal Racial Animus," CESifo Working Paper Series 10369, CESifo.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daams, Michiel N. & Sijtsma, Frans J. & Veneri, Paolo, 2019. "Mixed monetary and non-monetary valuation of attractive urban green space: A case study using Amsterdam house prices," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    2. Kathleen Kuerschner, 2016. "Immigration and Rental Prices of Residential Housing: Evidence from the Fall of the Berlin Wall," ERES eres2016_109, European Real Estate Society (ERES).
    3. Brülhart, Marius & Klinke, Gian-Paolo & Marcucci, Andrea & Rohner, Dominic & Thoenig, Mathias, 2023. "Price and Prejudice: Housing Rents Reveal Racial Animus," CEPR Discussion Papers 18050, C.E.P.R. Discussion Papers.
    4. Campo, Francesco & Giunti, Sara & Mendola, Mariapia, 2024. "Refugee crisis and right-wing populism: Evidence from the Italian Dispersal Policy," European Economic Review, Elsevier, vol. 168(C).
    5. Bill Cochrane & Jacques Poot, 2019. "The Effects of Immigration on Local Housing Markets," Working Papers in Economics 19/07, University of Waikato.
    6. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.
    7. Mussa, Abeba & Nwaogu, Uwaoma G. & Pozo, Susan, 2017. "Immigration and housing: A spatial econometric analysis," Journal of Housing Economics, Elsevier, vol. 35(C), pages 13-25.
    8. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    9. Kürschner, Kathleen, 2017. "Immigration and Rental Prices of Residential Housing: Evidence from the Fall of the Berlin Wall," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168092, Verein für Socialpolitik / German Economic Association.
    10. Kathleen Kürschner & Michael Kvasnicka, 2018. "The 2015 European Refugee Crisis and Residential Housing Rents in Germany," ERES eres2018_156, European Real Estate Society (ERES).
    11. Hennig, Jakob, 2021. "Neighborhood quality and opposition to immigration: Evidence from German refugee shelters," Journal of Development Economics, Elsevier, vol. 150(C).
    12. Russo, Francesco Flaviano, 2021. "Immigration and nationalism: The importance of identity," European Economic Review, Elsevier, vol. 137(C).
    13. Aksoy, Cevat Giray & Poutvaara, Panu & Schikora, Felicitas, 2023. "First time around: Local conditions and multi-dimensional integration of refugees," Journal of Urban Economics, Elsevier, vol. 137(C).
    14. Tommaso Colussi & Ingo E. Isphording & Nico Pestel, 2021. "Minority Salience and Political Extremism," American Economic Journal: Applied Economics, American Economic Association, vol. 13(3), pages 237-271, July.
    15. Joan Monras, 2020. "Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis," Journal of Political Economy, University of Chicago Press, vol. 128(8), pages 3017-3089.
    16. Jakub Lonsky, 2021. "Does immigration decrease far-right popularity? Evidence from Finnish municipalities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 97-139, January.
    17. Depetris-Chauvin, Emilio & Santos, Rafael J., 2018. "Unexpected guests: The impact of internal displacement inflows on rental prices in Colombian host cities," Journal of Development Economics, Elsevier, vol. 134(C), pages 289-309.
    18. Matti Sarvimäki, 2021. "Managing Refugee Protection Crises: Policy Lessons from Economics and Political Science," RF Berlin - CReAM Discussion Paper Series 2131, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    19. Dr Max Nathan, 2013. "The wider economic impacts of high-skilled migrants: a survey of the literature," National Institute of Economic and Social Research (NIESR) Discussion Papers 413, National Institute of Economic and Social Research.
    20. Umut Unal & Bernd Hayo & Isil Erol, 2022. "The Effect of Immigration on the German Housing Market," MAGKS Papers on Economics 202238, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jhouse:v:46:y:2019:i:c:s1051137718302651. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622881 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.