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Neighborhood Diversity and the Appreciation of Native- and Immigrant-Owned Homes

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  • Deborah A. Cobb-Clark
  • Mathias G. Sinning

Abstract

This paper examines the effect of neighborhood diversity on the nativity gap in homevalue appreciation in Australia. Specifically, immigrant homeowners experienced a 41.7 percent increase in median home values between 2001 and 2006, while the median value of housing owned by the native-born increased by 59.4 percent over the same period. We use a semi-parametric decomposition approach to assess the relative importance of the various determinants of home values in producing this gap. We find that the differential returns to housing wealth are not related to changes in the nature of the houses or the neighborhoods in which immigrants and native-born homeowners live. Rather, the gap stems from the fact that over time there were differential changes across groups in the hedonic prices (i.e., returns) associated with the underlying determinants of home values.

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Bibliographic Info

Paper provided by Centre for Economic Policy Research, Research School of Economics, Australian National University in its series CEPR Discussion Papers with number 624.

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Date of creation: Oct 2009
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Handle: RePEc:auu:dpaper:624

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Keywords: international migration; home-ownership; decomposition analysis;

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Cited by:
  1. Nicodemo, Catia & Raya, Josep Maria, 2012. "Change in the distribution of house prices across Spanish cities," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 42(4), pages 739-748.
  2. Carrillo, Paul E. & Pope, Jaren C., 2012. "Are homes hot or cold potatoes? The distribution of marketing time in the housing market," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 42(1-2), pages 189-197.
  3. 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, Elsevier, vol. 45(C), pages 45-56.
  4. Fesselmeyer, Eric & Le, Kien T. & Seah, Kiat Ying, 2012. "A household-level decomposition of the white–black homeownership gap," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 42(1-2), pages 52-62.

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