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Do House Prices Sink or Ride the Wave of Immigration?

Author

Listed:
  • Larkin, Matthew P.

    (Deakin University)

  • Askarov, Zohid

    (Deakin University)

  • Doucouliagos, Chris

    (Deakin University)

  • Dubelaar, Chris

    (Deakin University)

  • Klona, Maria

    (Deakin University)

  • Newton, Joshua

    (Deakin University)

  • Stanley, T. D.

    (Deakin University)

  • Vocino, Andrea

    (Deakin University)

Abstract

The sharp rise in international migration is a pressing social and economic issue, as seen in the recent global trend towards nationalism. One major concern is the impact of immigration on housing. We assemble a comprehensive database of 474 estimates of immigration's impact on house prices in 14 destination countries and find that immigration increases house prices, on average. However, attitudes to immigrants moderate this effect. In countries less welcoming to immigrants, house price increases are more limited.

Suggested Citation

  • Larkin, Matthew P. & Askarov, Zohid & Doucouliagos, Chris & Dubelaar, Chris & Klona, Maria & Newton, Joshua & Stanley, T. D. & Vocino, Andrea, 2018. "Do House Prices Sink or Ride the Wave of Immigration?," IZA Discussion Papers 11497, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11497
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    References listed on IDEAS

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    1. Saiz, Albert, 2007. "Immigration and housing rents in American cities," Journal of Urban Economics, Elsevier, vol. 61(2), pages 345-371, March.
    2. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2003. "Ethnic Enclaves and the Economic Success of Immigrants—Evidence from a Natural Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 329-357.
    3. Ran Abramitzky & Leah Boustan, 2017. "Immigration in American Economic History," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1311-1345, December.
    4. Albert Saiz & Susan Wachter, 2011. "Immigration and the Neighborhood," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 169-188, May.
    5. 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.
    6. 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.
    7. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
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    Cited by:

    1. Trent Saunders & Peter Tulip, 2020. "A Model of the Australian Housing Market," The Economic Record, The Economic Society of Australia, vol. 96(S1), pages 1-25, June.
    2. Chong Fennee, 2020. "Housing Price, Mortgage Interest Rate and Immigration," Real Estate Management and Valuation, Sciendo, vol. 28(3), pages 36-44, September.
    3. Lokman Gunduz & Ismail H. Genc & Ahmet Faruk Aysan, 2022. "Buying Citizenship: A Boon to District-Level House Prices in Istanbul," Housing Policy Debate, Taylor & Francis Journals, vol. 32(4-5), pages 697-712, July.
    4. Nikolay Kurichev & Ekaterina Kuricheva, 2020. "Interregional migration, the housing market, and a spatial shift in the metro area: Interrelationships in the case study of Moscow," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(4), pages 689-703, August.
    5. Bill Cochrane & Jacques Poot, 2019. "The Effects of Immigration on Local Housing Markets," Working Papers in Economics 19/07, University of Waikato.
    6. Trent Saunders & Peter Tulip, 2019. "A Model of the Australian Housing Market," RBA Research Discussion Papers rdp2019-01, Reserve Bank of Australia.

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    More about this item

    Keywords

    immigration; house prices; attitudes; meta-regression;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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