Do house prices ride the wave of immigration?

Larkin, Matthew P.; Askarov, Zohid; Doucouliagos, Hristos; Dubelaar, Chris; Klona, Maria; Newton, Jennifer Margaret; Stanley, T. D.; Vocino, Andrea

doi:10.1016/j.jhe.2019.04.002

Cited by 22 publications

(19 citation statements)

References 18 publications

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“…It is larger than that estimated for the United States by Saiz (2007), presumably because land use regulations make housing supply more elastic in much of the United States. It is substantially larger than many studies find for local effects on house prices as surveyed by Larkin et al (2018). The effects of immigration on relative neighbourhood prices tend to be more negative than effects on aggregate prices, so estimates of the effect increase with the level of geographic aggregation.…”

Section: Model Responsesmentioning

confidence: 67%

A Model of the Australian Housing Market

Saunders

Tulip

2020

Economic Record

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We build an empirical model of the Australian housing market that quantifies interrelationships between construction, vacancies, rents and prices. We find that low interest rates (partly reflecting lower world long‐term rates) explain much of the rapid growth in housing prices and construction over the past few years. Another demand factor, high immigration, also helps explain the tight housing market and rapid growth in rents in the late 2000s. A large part of the effect of interest rates on dwelling investment, and hence GDP, works through housing prices.

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Section: Model Responsesmentioning

confidence: 67%

A Model of the Australian Housing Market

Saunders

Tulip

2020

Economic Record

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“…If natives consider the physical presence of migrants in the area to be a negative amenity, they may prefer to leave or at least not to settle in neighbourhoods where migrants have a strong presence. The meta-analysis conducted by Larkin et al (2018) links 474 comparable estimates from 45 econometric studies, covering 14 developed countries with the World Value Survey data on attitudes towards migrants. The study demonstrates that in countries with a high percentage of respondents who are reluctant to have immigrants as neighbours house price increase is more limited.…”

Section: Related Literaturementioning

confidence: 99%

Housing Values and the Residential Settlement of Migrants: Zooming in on Neighbourhoods in Italian Provincial Capitals

Kalantaryan

Alessandrini

2020

Spat Demogr

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This study looks at the relationship between housing values (prices and rents) and the residential settlement of migrants in different neighbourhoods in Italian provincial capitals. We exploit here the high spatial resolution dataset on the settlement of migrants developed within the Data for Integration (D4I) project. The D4I information on resident population characteristics was merged with a dataset on housing values for civilian and economic residential units using boundaries defined by local housing market characteristics. The results suggest that: (1) more diverse neighbourhoods are also those with relatively lower housing values; (2) the relationship between housing values and the concentration of migrants is non-linear; and (3) the sign and significance of the association varies significantly depending on the origin of migrants.

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“…The cases of China, New Zealand, and the United States show that the migration inflow exerts a supraproportional effect on local real estate markets: the migration inflow leads to higher increase in housing prices than a similar natural growth of the population (Coleman & Landon-Lane, 2007;Garriga, Hedlund, Tang, & Wang, 2017;Liao, Wang, Wang, & Yip, 2017;Saiz, 2007). This interrelation is observable in both international (a meta-analysis is presented in Larkin et al, 2018) and domestic migration and corresponds to theoretical models (Frame, 2007).…”

Section: Introductionmentioning

confidence: 96%