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The Impact of the Announcement of Temporary Building Sites for Refugees on House Prices in Gothenburg

Author

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  • Kjellander, Josef

    (University of Gothenburg)

  • Nilsson, Viktor

    (University of Gothenburg)

  • van Vuuren, Aico

    (University of Groningen)

Abstract

We evaluate the price development of apartments in neighborhoods surrounding temporary housing for refugees using the unpredicted announcement of three building sites, targeting refugees, in Gothenburg. More in particular, we look at the price development in the year after the announcement. We use a causal outcome model that takes account of time and postal-code fixed effects and we define an area to be affected by the announcement based on walking distance. We find support for a small and significant price effect. In addition, we find that the price effect of the neighborhood depends on the income level of the neighborhood. We interpret this as evidence for the fact that not having to live close to refugees can be seen as a luxury good.

Suggested Citation

  • Kjellander, Josef & Nilsson, Viktor & van Vuuren, Aico, 2018. "The Impact of the Announcement of Temporary Building Sites for Refugees on House Prices in Gothenburg," IZA Discussion Papers 11726, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11726
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    References listed on IDEAS

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    1. Saiz, Albert, 2007. "Immigration and housing rents in American cities," Journal of Urban Economics, Elsevier, vol. 61(2), pages 345-371, March.
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    6. Gautier, Pieter A. & Siegmann, Arjen & Van Vuuren, Aico, 2009. "Terrorism and attitudes towards minorities: The effect of the Theo van Gogh murder on house prices in Amsterdam," Journal of Urban Economics, Elsevier, vol. 65(2), pages 113-126, March.
    7. Albert Saiz & Susan Wachter, 2011. "Immigration and the Neighborhood," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 169-188, May.
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    Cited by:

    1. Kathleen Kürschner & Michael Kvasnicka, 2018. "The 2015 European Refugee Crisis and Residential Housing Rents in Germany," ERES eres2018_156, European Real Estate Society (ERES).

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    More about this item

    Keywords

    house prices; migration;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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