IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp11497.html
   My bibliography  Save this paper

Do House Prices Sink or Ride the Wave of Immigration?

Author

Listed:
  • Larkin, Matthew P.

    (Deakin University)

  • Askarov, Zohid

    (Deakin University)

  • Doucouliagos, Chris

    (Deakin University)

  • Dubelaar, Chris

    (Deakin University)

  • Klona, Maria

    (Deakin University)

  • Newton, Joshua

    (Deakin University)

  • Stanley, T. D.

    (Deakin University)

  • Vocino, Andrea

    (Deakin University)

Abstract

The sharp rise in international migration is a pressing social and economic issue, as seen in the recent global trend towards nationalism. One major concern is the impact of immigration on housing. We assemble a comprehensive database of 474 estimates of immigration's impact on house prices in 14 destination countries and find that immigration increases house prices, on average. However, attitudes to immigrants moderate this effect. In countries less welcoming to immigrants, house price increases are more limited.

Suggested Citation

  • Larkin, Matthew P. & Askarov, Zohid & Doucouliagos, Chris & Dubelaar, Chris & Klona, Maria & Newton, Joshua & Stanley, T. D. & Vocino, Andrea, 2018. "Do House Prices Sink or Ride the Wave of Immigration?," IZA Discussion Papers 11497, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11497
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp11497.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2003. "Ethnic Enclaves and the Economic Success of Immigrants—Evidence from a Natural Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 329-357.
    2. Saiz, Albert, 2007. "Immigration and housing rents in American cities," Journal of Urban Economics, Elsevier, vol. 61(2), pages 345-371, March.
    3. Accetturo, Antonio & Manaresi, Francesco & Mocetti, Sauro & Olivieri, Elisabetta, 2014. "Don't stand so close to me: The urban impact of immigration," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 45-56.
    4. Ran Abramitzky & Leah Boustan, 2017. "Immigration in American Economic History," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1311-1345, December.
    5. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
    6. Albert Saiz & Susan Wachter, 2011. "Immigration and the Neighborhood," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 169-188, May.
    7. Mussa, Abeba & Nwaogu, Uwaoma G. & Pozo, Susan, 2017. "Immigration and housing: A spatial econometric analysis," Journal of Housing Economics, Elsevier, vol. 35(C), pages 13-25.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nikolay Kurichev & Ekaterina Kuricheva, 2020. "Interregional migration, the housing market, and a spatial shift in the metro area: Interrelationships in the case study of Moscow," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(4), pages 689-703, August.
    2. Trent Saunders & Peter Tulip, 2020. "A Model of the Australian Housing Market," The Economic Record, The Economic Society of Australia, vol. 96(S1), pages 1-25, June.
    3. Bill Cochrane & Jacques Poot, 2019. "The Effects of Immigration on Local Housing Markets," Working Papers in Economics 19/07, University of Waikato.
    4. Chong Fennee, 2020. "Housing Price, Mortgage Interest Rate and Immigration," Real Estate Management and Valuation, Sciendo, vol. 28(3), pages 36-44, September.
    5. Gunduz, Lokman & Genc, Ismail H. & Aysan, Ahmet Faruk, 2021. "Buying citizenship: A boon to district-level house prices in Istanbul," MPRA Paper 110028, University Library of Munich, Germany.
    6. Trent Saunders & Peter Tulip, 2019. "A Model of the Australian Housing Market," RBA Research Discussion Papers rdp2019-01, Reserve Bank of Australia.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Larkin, Matthew P. & Askarov, Zohid & Doucouliagos, Hristos & Dubelaar, Chris & Klona, Maria & Newton, Joshua & Stanley, T.D. & Vocino, Andrea, 2019. "Do house prices ride the wave of immigration?," Journal of Housing Economics, Elsevier, vol. 46(C).
    2. Bill Cochrane & Jacques Poot, 2019. "The Effects of Immigration on Local Housing Markets," Working Papers in Economics 19/07, University of Waikato.
    3. Kathleen Kürschner & Michael Kvasnicka, 2018. "The 2015 European Refugee Crisis and Residential Housing Rents in Germany," ERES eres2018_156, European Real Estate Society (ERES).
    4. Adam Tyrcha, 2020. "Migration and perceptions of housing availability in Sweden," Papers in Regional Science, Wiley Blackwell, vol. 99(4), pages 945-975, August.
    5. Cobb-Clark, Deborah A. & Sinning, Mathias G., 2011. "Neighborhood diversity and the appreciation of native- and immigrant-owned homes," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 214-226, May.
    6. Azarnert, Leonid V., 2018. "Refugee resettlement, redistribution and growth," European Journal of Political Economy, Elsevier, vol. 54(C), pages 89-98.
    7. Umut Unal & Bernd Hayo & Isil Erol, 2022. "The Effect of Immigration on the German Housing Market," MAGKS Papers on Economics 202238, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    8. Sanchis-Guarner, Rosa, 2023. "Decomposing the impact of immigration on house prices," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    9. Andersson, Henrik & Berg, Heléne & Dahlberg, Matz, 2021. "Migrating natives and foreign immigration: Is there a preference for ethnic residential homogeneity?," Journal of Urban Economics, Elsevier, vol. 121(C).
    10. Mussa, Abeba & Nwaogu, Uwaoma G. & Pozo, Susan, 2017. "Immigration and housing: A spatial econometric analysis," Journal of Housing Economics, Elsevier, vol. 35(C), pages 13-25.
    11. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    12. Nathan, Max, 2013. "The Wider Economic Impacts of High-Skilled Migrants: A Survey of the Literature," IZA Discussion Papers 7653, Institute of Labor Economics (IZA).
    13. Yongheng Deng & Maggie R. Hu & Adrian D. Lee, 2021. "Melting pot or salad bowl: Cultural distance and housing investments," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(S1), pages 235-267, March.
    14. Riccardo Borgoni & Giacomo Degli Antoni & Marco Faillo & Alessandra Michelangeli, 2017. "Preferences for living in homogenous communities and cooperation: a new methodological approach combining the hedonic price model and a field experiment," Econometica Working Papers wp62, Econometica.
    15. 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.
    16. Sharpe, Jamie, 2019. "Re-evaluating the impact of immigration on the U.S. rental housing market," Journal of Urban Economics, Elsevier, vol. 111(C), pages 14-34.
    17. Viggo Nordvik & Liv Osland & Inge Thorsen & Ingrid Sandvig Thorsen, 2019. "Capitalization of neighbourhood diversity and segregation," Environment and Planning A, , vol. 51(8), pages 1775-1799, November.
    18. Depetris-Chauvin, Emilio & Santos, Rafael J., 2018. "Unexpected guests: The impact of internal displacement inflows on rental prices in Colombian host cities," Journal of Development Economics, Elsevier, vol. 134(C), pages 289-309.
    19. Dr Max Nathan, 2013. "The wider economic impacts of high-skilled migrants: a survey of the literature," National Institute of Economic and Social Research (NIESR) Discussion Papers 413, National Institute of Economic and Social Research.
    20. Becker, Sascha O. & Ferrara, Andreas, 2019. "Consequences of forced migration: A survey of recent findings," Labour Economics, Elsevier, vol. 59(C), pages 1-16.

    More about this item

    Keywords

    immigration; house prices; attitudes; meta-regression;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp11497. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.