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The 2015 European Refugee Crisis and Residential Housing Rents in Germany

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  • Kürschner Rauck, Kathleen

    () (Otto-von-Guericke University Magdeburg)

  • Kvasnicka, Michael

    () (Otto-von-Guericke University Magdeburg)

Abstract

We study the impact of the 2015 mass arrival of refugees to Germany on residential housing rents. Using unique data on end of year county-level refugee populations and data on monthly offers of flats for rent from Germany's leading online property broker Immobilienscout24, we find strong evidence in difference-in-differences regressions for a negative effect of refugee immigration on rental prices. Adverse price effects, however, appear attenuated in the heyday of the crisis in late 2015 if a larger share of refugees is housed in decentralized accommodation. Various robustness checks corroborate our findings, including IV regressions that exploit for identification information on the pre-crisis location of refugee reception centers and group quarters.

Suggested Citation

  • Kürschner Rauck, Kathleen & Kvasnicka, Michael, 2018. "The 2015 European Refugee Crisis and Residential Housing Rents in Germany," IZA Discussion Papers 12047, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12047
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    Cited by:

    1. Felix Stips & Krisztina Kis-Katos, 2020. "The impact of co-national networks on asylum seekers’ employment: Quasi-experimental evidence from Germany," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-22, August.
    2. Deole, Sumit & Huang, Yue, 2020. "How do new immigration flows affect existing immigrants? Evidence from the refugee crisis in Germany," GLO Discussion Paper Series 579, Global Labor Organization (GLO).

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    More about this item

    Keywords

    refugee migration; housing rents; Germany;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • 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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