Effects of Immigration on Local Housing Markets

Cochrane, William; Poot, Jacques

doi:10.1007/978-3-030-48291-6_12

Cited by 10 publications

(5 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The initial results corroborate previous findings that there is a correlation between the inflow of Ukrainian refugees and rent price increases across Europe. An inflow of refugees equal to 1% of the host country population coincided with a 0.6% increase in rent prices, smaller than the 1-1.5% impact indicated by worldwide studies on migration (Cochrane and Poot 2021).…”

Section: Resultsmentioning

confidence: 69%

The Impact of Ukrainian War Refugees on Rental Prices in Europe: A Panel Data Analysis

Czerniak

2024

CHA

View full text Add to dashboard Cite

This study examines the impact of Ukrainian war refugees on actual rental prices in 27 European countries. Using panel data regression analysis for the period 2017Q1-2023Q1, the study found that inflation, house price growth, and interest rates were the primary drivers of rental price growth after February 2022. The study also showed that an inflow of Ukrainian refugees equal to 1% of the host country’s population translated into an increase in rental price growth of 0.2-0.3%, but this effect was not statistically significant at the 5% probability threshold. Auxiliary estimations revealed the statistical significance of Ukrainian migration when adjusting for the stringency of rent controls and size of the rental market.

show abstract

Section: Resultsmentioning

confidence: 69%

The Impact of Ukrainian War Refugees on Rental Prices in Europe: A Panel Data Analysis

Czerniak

2024

CHA

View full text Add to dashboard Cite

show abstract

“…For US MSAs, Saiz (2007) estimates an effect of about 1:1 from immigration to existing population on home prices (i.e.,

\beta =1

in equation ()), while Ottaviano and Peri (2012) recover a long‐run elasticity about twice our national‐share estimate, 0.68%, and smaller than our estimate with the country‐of‐origin instrument. Cochrane and Poot (2021) survey the literature findings across eight countries and place housing price elasticities in the range of 1% to 2%, despite heterogeneity depending on the context of the underlying immigration flow. This is again largely consistent with our estimates.…”

Section: Empirical Strategy and Resultsmentioning

confidence: 99%

“…We show that the university campus generates a convex gradient of rents, rent growth, student population and supply of multi-family rentals and that non-students and owner-occupied dwellings are located farther out. Akin to well-established patterns of residential segregation based on attributes such as race and income (e.g., Cutler andGlaeser 1997 andBayer et al 2004), students and non-students live in distinct college town areas, creating a segmented student housing market where international and native students compete for rental units in the student enclave.…”

Section: The Impact Of International Students 649mentioning

confidence: 99%

The impact of international students on housing markets

Mocanu

Tremacoldi‐Rossi

2023

Canadian J of Economics

View full text Add to dashboard Cite

We study the impact of the 2005-2015 international student boom in US universities on local housing markets. By constructing a sample of American college towns characterizing rarely studied local markets in small urban areas, we show that international students exogenously sustained demand for rentals and residential investment, representing counter-cyclical shocks during the Great Recession. Exploiting the historical distribution of foreign enrolment across college towns and country-of-origin networks, we find that international students increased rents by 1.3% and home prices by 2.5% relative to the housing boom peak, translating into home equity gains of $4,000. An analysis exploiting within-city dynamics reveals that neighbourhoods near campus absorbed international inflows by replacing single-family homes with apartment rentals.Résumé. L'incidence des étudiants internationaux sur les marchés du logement. Nous étudions l'incidence du boom d'étudiants internationaux de 2005 à 2015 dans les universités américaines sur les marchés du logement locaux. En créant un échantillon de villes collégiales américaines qui caractérisent les marchés locaux dans les petits secteurs urbains rarement étudiés, nous montrons que les étudiants internationaux soutiennent de l'extérieur la demande de logements de location et l'investissement résidentiel, ce qui représente les chocs contracycliques de la Grande Récession. En exploitant la distribution historique des effectifs étrangers dans les villes collégiales et les réseaux des pays d'origine, nous constatons que les étudiants internationaux ont fait augmenter les loyers de 1,3% et le prix des maisons de 2,5% par rapport au sommet du boom immobilier, ce qui se traduit par des gains de la valeur nette du logement de 4 000 $. Une analyse exploitant les dynamiques au sein des villes révèle que les quartiers situés près des campus ont absorbé les arrivées internationales en remplaçant les maisons unifamiliales par des appartements à louer.

show abstract

“…There is also little evidence found for Canada (Akbari and Aydede, 2012) and New Zealand (Hyslop et al, 2019) on the impact of immigration on house price. Interested readers are referred to Larkin et al (2019) for a recent meta-analysis in which they find collective evidence of upward pressures in house prices as a result from immigration, and also Cochrane and Poot's (2019) systematic review of eight developed countries on the effects of immigration on house rents and prices. Existing studies also examine the impact of immigration inflows on natives migration and population.…”

Section: Literature Reviewmentioning

confidence: 99%

Causal effects of immigration inflows on house prices in a traditionally non-destination country

Wong

Soon

2021

IJHMA

View full text Add to dashboard Cite

Purpose The purpose of this study is to examine the causal impact of international immigration inflows on housing prices at the state level in Malaysia from 2007 to 2018. Design/methodology/approach Hedonic regressions using both fixed effects and first difference approaches are used to estimate the impact of immigration inflows on house prices in Malaysia. This study deals with potential endogeneity of immigrants’ choices of destination states in Malaysia by using a shift-share instrument variable approach. Specifically, historical shares of immigrants in a state are used to predict current immigrant inflows to a particular state. The predicted value of immigration flows is then inserted into the house price regression models in place of the actual immigration flows. Findings Using annual data for 14 states from 2007 to 2018, this study documents the positive impact of immigration inflows on house prices in Malaysia. The authors find that a 1% increase in immigration inflows is associated with an increase of 10.2% (first difference) and 13.4% (fixed effects) in house prices. The economic impact is larger in magnitude than that found in developed countries. Contrary to existing studies that find immigration inflows to be associated with native flight, the authors find support for the attraction effects hypothesis, where immigration inflow is positive and significantly related to net native flows. Research limitations/implications The effects of immigration inflows are economically significant, considering that the effects are 10 times larger than those documented in the USA. Policymakers in Malaysia ought to monitor house price trends in immigrant-popular states to ensure that natives are not priced out by new immigrants. Originality/value To the best of the authors’ knowledge, this is perhaps the first study to focus on the relationship between immigration inflows and house prices in Malaysia. Focusing on Malaysia has at least two originality aspects. First, Malaysia is relatively not an immigrant-popular destination. Second, Malaysia has a multiracial and heterogenous society among its natives. The findings, obtained within these two settings, would therefore provide a wider scope of result generalization, and natural experiment grounds for causal implications of our results.

show abstract

Effects of Immigration on Local Housing Markets

Cited by 10 publications

References 36 publications

The Impact of Ukrainian War Refugees on Rental Prices in Europe: A Panel Data Analysis

The Impact of Ukrainian War Refugees on Rental Prices in Europe: A Panel Data Analysis

The impact of international students on housing markets

Causal effects of immigration inflows on house prices in a traditionally non-destination country

Contact Info

Product

Resources

About