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Room in the Kitchen for the Melting Pot: Immigration and Rental Prices

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Author Info
Albert Saiz (Department of Economics, Harvard University; Federal Reserve Bank of Philadelphia)

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Abstract

This paper studies the response of housing markets to immigration shocks. Following Card (1990), I examine the changes in rental prices in Miami and three comparison groups after the Mariel boatlift. This exogenous immigration shock added an extra 9% to Miami's renter population in 1980. I find that rents increased from 8% to 11% more in Miami than in the comparison groups between 1979 and 1981. By 1983 the rent differential was still 7%. Rental units of higher quality were not affected by the immigration shock. Units occupied by low-income Hispanic residents in 1979 experienced an extra 8% differential hike with respect to other low-income units. Relative housing prices moved in the opposite direction from rents in the short run. Copyright (c) 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 85 (2003)
Issue (Month): 3 (05)
Pages: 502-521
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Handle: RePEc:tpr:restat:v:85:y:2003:i:3:p:502-521

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  1. Albert Saiz, 2006. "Immigration and Housing Rents in American Cities," IZA Discussion Papers 2189, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. David Card, 2007. "How Immigration Affects U.S. Cities," CReAM Discussion Paper Series 0711, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
  3. Andrew Coleman & John Landon-Lane, 2007. "Housing Markets and Migration in New Zealand, 1962-2006," Reserve Bank of New Zealand Discussion Paper Series DP2007/12, Reserve Bank of New Zealand. [Downloadable!]
  4. John Quigley & Steven Raphael, 2006. "Is Housing Unaffordable? Why Isn't It More Affordable?," Berkeley Program on Housing and Urban Policy, Working Paper Series 1047, Berkeley Program on Housing and Urban Policy. [Downloadable!]
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  5. GianMarco Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US cities," Econometric Society 2004 North American Summer Meetings 91, Econometric Society. [Downloadable!]
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  6. Libertad González & Francesc Ortega, 2008. "How Do Very Open Economies Absorb Large Immigration Flows? Recent Evidence from Spanish Regions," Economic Reports 06-08, FEDEA. [Downloadable!]
    Other versions:
  7. Ethan Lewis, 2004. "How did the Miami labor market absorb the Mariel immigrants?," Working Papers 04-3, Federal Reserve Bank of Philadelphia. [Downloadable!]
  8. Albert Saiz & Susan Wachter, 2006. "Immigration and the neighborhood," Working Papers 06-22, Federal Reserve Bank of Philadelphia. [Downloadable!]
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  9. Libertad González Luna & Francesc Ortega, 2007. "How do Very Open Economies Adjust to Large Immigration Flows? Recent Evidence from Spanish Regions," Economics Working Papers 1059, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  10. Amuedo-Dorantes & Sara de la Rica, 2008. "Complements or Substitutes? Immigrant and Native Task Specialization in Spain," CReAM Discussion Paper Series 0816 Key Words: JEL Codes, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
  11. Peri, Giovanni & Ottaviano, Gianmarco I. P., 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," Working Papers 05-8, University of California at Davis, Department of Economics. [Downloadable!]
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  12. Hendrik P. van Dalen & Kène Henkens, 2004. "The Rationality behind Immigration Preferences," Tinbergen Institute Discussion Papers 04-002/1, Tinbergen Institute. [Downloadable!]
  13. George J. Borjas, 2002. "Homeownership in the Immigrant Population," NBER Working Papers 8945, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Steven Stillman & David C. Maré, 2008. "Housing Markets and Migration: Evidence from New Zealand," Working Papers 08_06, Motu Economic and Public Policy Research. [Downloadable!]
  15. Erica Greulich & John Quigley & Steven Raphael, 2006. "The Anatomy of Rent Burdens: Immigration, Growth and Rental Housing," Berkeley Program on Housing and Urban Policy, Working Paper Series 1049, Berkeley Program on Housing and Urban Policy. [Downloadable!]
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