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The Globalization of Local Housing Markets: Immigrants, the Motherland and Housing Prices in Australia

Author

Listed:
  • Morteza Moallemi

    (RMIT University)

  • Daniel Melser

    (Monash University)

  • Xiaoyan Chen

    (RMIT University)

  • Ashton Silva

    (RMIT University)

Abstract

The impact of immigrants on housing prices and rents has been well documented in the literature. There has been less research, however, on other mechanisms by which global economic and financial developments may impact on local housing markets. We investigate whether the foreign-born—that is the stock of previous immigrants—act as a conduit for economic changes abroad to influence local housing markets. Examining disaggregated regions in Australia from 2006-16, we construct a measure of the average performance of the motherland economies of the foreign-born for each region. We find evidence that house prices and rental growth tend to rise when motherland economies are performing poorly. This effect is economically meaningful, robust and appears to represent a distinct channel from the immigration effect.

Suggested Citation

  • Morteza Moallemi & Daniel Melser & Xiaoyan Chen & Ashton Silva, 2022. "The Globalization of Local Housing Markets: Immigrants, the Motherland and Housing Prices in Australia," The Journal of Real Estate Finance and Economics, Springer, vol. 65(1), pages 103-126, July.
    • Handle: RePEc:kap:jrefec:v:65:y:2022:i:1:d:10.1007_s11146-021-09828-2
    DOI: 10.1007/s11146-021-09828-2
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    References listed on IDEAS

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    More about this item

    Keywords

    Immigration; Housing prices and rents; Economic linkages; Spillovers; Australia;
    All these keywords.

    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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