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Immigrant language barriers and house prices

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  • Fischer, Andreas M.

Abstract

Are language skills important in explaining the nexus between house prices and immigrant inflows? The language barrier hypothesis says that immigrants from a non common language country value amenities more than immigrants from common language countries. In turn, immigrants from non common language countries are less price sensitive to house price changes than immigrants from a common language country. Tests of the language barrier hypothesis with Swiss house prices show that an immigration inflow from a non common language country equal to 1% of an area's population is coincident with an increase in prices for single-family homes of about 4.9%. Immigrant inflow from a common language country instead has no statistically significant impact.

Suggested Citation

  • Fischer, Andreas M., 2012. "Immigrant language barriers and house prices," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 389-395.
  • Handle: RePEc:eee:regeco:v:42:y:2012:i:3:p:389-395
    DOI: 10.1016/j.regsciurbeco.2011.11.003
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    2. Weida Kuang & Qilin Wang, 2018. "Cultural similarities and housing market linkage: evidence from OECD countries," Frontiers of Business Research in China, Springer, vol. 12(1), pages 1-25, December.
    3. Teuta Balliu & Artan Spahiu, 2020. "Pre-Negotiation Activities: A Study of the Main Activities Undertaken by the Negotiators as Preparation for Negotiation," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 6, May - Aug.
    4. Fabienne Helfer & Volker Grossmann & Aderonke Osikominu, 2023. "How does immigration affect housing costs in Switzerland?," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 159(1), pages 1-31, December.
    5. Hippolyte d’Albis & Ekrame Boubtane & Dramane Coulibaly, 2019. "International Migration and Regional Housing Markets: Evidence from France," International Regional Science Review, , vol. 42(2), pages 147-180, March.
    6. Yongheng Deng & Maggie R. Hu & Adrian D. Lee, 2021. "Melting pot or salad bowl: Cultural distance and housing investments," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(S1), pages 235-267, March.
    7. Hippolyte d’Albis & Ekrame Boubtane & Dramane Coulibaly, 2019. "International Migration and Regional Housing Markets: Evidence from France," International Regional Science Review, , vol. 42(2), pages 147-180, March.
    8. 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.
    9. Adams, Zeno & Blickle, Kristian, 2016. "Immigration, Real Estate Prices and the Consumption Decisions of Native Households," Working Papers on Finance 1615, University of St. Gallen, School of Finance.
    10. 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.
    11. Bayar, Mehmet, 2016. "The impact of cultural diversity on the German housing market," Ruhr Economic Papers 662, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    12. Fischer, Andreas & Zachmann, Lucca, 2020. "The effect of self-financed property buyers on local house prices," CEPR Discussion Papers 14632, C.E.P.R. Discussion Papers.
    13. Basten, Christoph & Koch, Catherine, 2015. "The causal effect of house prices on mortgage demand and mortgage supply: Evidence from Switzerland," Journal of Housing Economics, Elsevier, vol. 30(C), pages 1-22.
    14. Chang, Zheng, 2018. "Immigration and the Neighborhood: New Evidence from Recent Immigrants in Hong Kong," International Real Estate Review, Global Social Science Institute, vol. 21(4), pages 549-566.
    15. Lea Eilers & Alfredo R. Paloyo & Peggy Bechara, 2022. "The effect of peer employment and neighborhood characteristics on individual employment," Empirical Economics, Springer, vol. 62(4), pages 1885-1908, April.
    16. Christoph Basten & Cathérine Koch, 2014. "The causal effect of house prices on mortgage demand and mortgage supply," ECON - Working Papers 140, Department of Economics - University of Zurich.

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    More about this item

    Keywords

    Immigration; House prices; (Non) common language;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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