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Housing Costs, College Enrollment, and Student Mobility

Author

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  • Goehausen, Johannes

    (Leibniz University of Hannover)

  • Thomsen, Stephan L.

    (Leibniz University of Hannover)

Abstract

We study the effects of rental price changes on college enrollment rates. We exploit cross-district variation in the size and timing of local rental price booms in Germany during the 2010s. A one standard deviation increase in apartment rents decreased per-capita college enrollment by 1.1 percentage points on average. The effect was driven by first-year students moving long distances and was more pronounced in less densely populated locations. Housing costs - the largest component of students' expenditures and an important location factor - have contributed to the slowdown in higher education expansion and reduced the skill-binding effect of universities, exacerbating regional inequality.

Suggested Citation

  • Goehausen, Johannes & Thomsen, Stephan L., 2024. "Housing Costs, College Enrollment, and Student Mobility," IZA Discussion Papers 16726, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp16726
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • 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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