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The Anatomy of Rent Burdens: Immigration, Growth and Rental Housing

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Author Info
Erica Greulich (University of California, Berkeley)
John Quigley (University of California, Berkeley)
Steven Raphael (University of California, Berkeley)

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Abstract

This paper assesses whether growth in the immigrant population over the past two decades has adversely affected the housing consumption opportunities of native renter households. We find that the monthly housing expenses of native renters are higher in metropolitan areas with larger immigrant populations. However, these marginal effects are comparable for both native households in direct competition with immigrants and native households that are unlikely to compete with immigrants in the housing market. Moreover, while average native rents increase as the proportion immigrant increases within a given metropolitan area, the same is not true for rent-to-income ratios. We do find that native households in metropolitan areas with large immigrant populations consume fewer rooms and are relatively more likely to reside in crowded conditions. This result holds in an analysis of cross-sectional variation as well as the analysis of changes within metropolitan areas. However, there is little evidence that these effects are larger for those native households who are likely to be in competition for housing with immigrant households.

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Paper provided by Berkeley Program on Housing and Urban Policy in its series Berkeley Program on Housing and Urban Policy, Working Paper Series with number 1049.

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Date of creation: 27 Jun 2006
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Handle: RePEc:cdl:bphupl:1049

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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, 05. [Downloadable!] (restricted)
  2. Stephen Malpezzi, 1994. "Housing Prices, Externalities, and Regulation in U.S. Metropolitan Areas," Wisconsin-Madison CULER working papers 94-08, University of Wisconsin Center for Urban Land Economic Research.
  3. Albert Saiz, 2003. "Immigration and housing rents in American cities," Working Papers 03-12, Federal Reserve Bank of Philadelphia. [Downloadable!]
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  4. John M. Quigley & Steven Raphael, 2004. "Is Housing Unaffordable? Why Isn't It More Affordable?," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 191-214, Winter. [Downloadable!] (restricted)
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  5. Quigley, John Michael, 1972. "A Model of Swedish Emigration," The Quarterly Journal of Economics, MIT Press, vol. 86(1), pages 111-26, February. [Downloadable!] (restricted)
  6. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December. [Downloadable!] (restricted)
  7. David Card, 1990. "The impact of the Mariel boatlift on the Miami labor market," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 43(2), pages 245-257, January.
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  8. Ohls, James C., 1975. "Public policy toward low income housing and filtering in housing markets," Journal of Urban Economics, Elsevier, vol. 2(2), pages 144-171, April. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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!]
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