The effect of asylum seeker reception centers on nearby house prices: Evidence from The Netherlands

With 20,945 asylum applications in 2016, the Netherlands received the tenth highest number of asylum requests in Europe. From the time of their arrival, and until a decision on their asylum requests is made, asylum seekers are sheltered in asylum seeker reception centers (ASRCs) across the country. This paper tests whether the opening of reception centers affects the prices of nearby houses. In doing so, likely differential effects across urban and non-urban areas, as well as for ASRCs of distinct capacities to host asylum seekers, are considered. The analysis uses hedonic regressions that are based on a staggered difference-in-differences design. Estimation comes from 2009–2017 information on the transaction prices of houses (N = 347,479) and the locations and opening dates of nearby ASRCs (N = 75). The results indicate that the opening of ASRCs causes the prices of some houses to fall by approximately 9.3%. However, this estimated effect pertains solely to single-family houses in less densely populated areas and for ASRC of high hosting capacity, whereas in cities no economically or statistically significant effects are found. The findings of this study have implications for the design of public policies that regard the spatial dispersion of ASRCs.