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Housing market reactions in presence of retirees’ migration

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  • Paloma Taltavull de La Paz
  • Karen M. Gibler

Abstract

Retiree migration in Europe has been an increasing phenomenon during the last fifteen years as people from Northern countries move to the South. Spain has been one of the primary destinations for this group where they tend to concentrate in some coastal and very warm areas such as Alicante, the Islands and the South. The larger groups arriving to Alicante are British and German. Their flow of arrivals coincided with dramatic price and construction growth. This paper explores the role these retiree migrants may have played in the expansion of the Alicante housing market. We specifically investigate their influence on housing prices and the differential impact related to nationality. Using time series analysis, the twe adjust a housing demand function by introducing international economic variables in order to capture the impact of relative monetary and income conditions in Germany and UK on the Alicante housing market. Results seem to suggest that the strong retiree migration flow could have created a shock in the Alicante housing market with different effects depending on the immigrants’ nationality.

Suggested Citation

  • Paloma Taltavull de La Paz & Karen M. Gibler, 2010. "Housing market reactions in presence of retirees’ migration," LARES lares-2010-artigo-503-000, Latin American Real Estate Society (LARES).
    • Handle: RePEc:lre:wpaper:lares-2010-artigo-503-000-dr
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    More about this item

    Keywords

    economic effects; housing market; Housing Prices; retirement;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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