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Effects of immigration on house prices in Canada

  • Ather H. Akbari
  • Yigit Aydede

From the turn of the present century until late 2008, house prices in some developed countries, including Canada, rose sharply compared to the increases in their per capita incomes. Some in the public circles of these countries argue that immigration fueled this rise. Each year, Canada admits about 225 000 immigrants, but information on the effect of immigration on house prices in this country is lacking. Our extensive econometric analysis based on panel data at census division levels obtained from the 1996, 2001 and 2006 population censuses indicates a statistically significant but small effect of immigration on prices of privately owned dwellings in Canada. An out migration of the native born from the areas where new immigrants settle, or an increased supply of housing due to expectations of higher demand in those areas may have caused this result.

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File URL: http://hdl.handle.net/10.1080/00036846.2010.548788
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 44 (2012)
Issue (Month): 13 (May)
Pages: 1645-1658

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Handle: RePEc:taf:applec:44:y:2012:i:13:p:1645-1658
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