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Immigration and House Prices in the UK

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  • Sa, Filipa

    (King's College London)

Abstract

This article studies the effect of immigration on house prices in the UK. It finds that immigration has a negative effect on house prices and presents evidence that this negative effect is due to the mobility response of the native population. Natives respond to immigration by moving to different areas and those who leave are at the top of the wage distribution. This generates a negative income effect on housing demand and pushes down house prices. The negative effect of immigration on house prices is driven by local areas where immigrants have lower education.

Suggested Citation

  • Sa, Filipa, 2011. "Immigration and House Prices in the UK," IZA Discussion Papers 5893, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5893
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    References listed on IDEAS

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    Cited by:

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    2. 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.

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    More about this item

    Keywords

    house prices; immigration;

    JEL classification:

    • 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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