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Non-local Students, Housing Demand and Rental Impact: Evidence from Mainland Students in Hong Kong

Author

Listed:
  • Chang, Zheng

    (City University of Hong Kong)

Abstract

Since the late 2000s, many universities worldwide have seen a significant increase in the number of non-local students. This study examines the aggregate housing demand of those students and their impact on local rentals by using mainland students in Hong Kong as an example. The findings show that students have very different residential patterns and housing demand than other types of residents. Their income elasticity of commuting is close to 0, and they have lower income elasticity of housing demand compared with the local residents. As a group, they exhibit strong patterns of clustered living situations. By applying the differences-in-differences approach, the study finds that the average annual rental price has increased over 10% in neighborhoods with student clusters than in other comparable neighborhoods in recent years.

Suggested Citation

  • Chang, Zheng, 2017. "Non-local Students, Housing Demand and Rental Impact: Evidence from Mainland Students in Hong Kong," International Real Estate Review, Global Social Science Institute, vol. 20(4), pages 525-548.
    • Handle: RePEc:ire:issued:v:20:n:04:2017:p:525-548
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    References listed on IDEAS

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    Cited by:

    1. Chang, Zheng & Li, Jing, 2018. "The impact of in-house unnatural death on property values: Evidence from Hong Kong," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 112-126.
    2. Chang, Zheng, 2018. "Information Barriers, Housing Searches, and Residential Satisfaction: A Study of Mainland China Students in Hong Kong," International Real Estate Review, Global Social Science Institute, vol. 21(3), pages 343-365.
    3. Chang, Zheng, 2018. "Immigration and the Neighborhood: New Evidence from Recent Immigrants in Hong Kong," International Real Estate Review, Global Social Science Institute, vol. 21(4), pages 549-566.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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