Immigration and Housing Booms: Evidence from Spain

González, Libertad; Ortega, Francesc

doi:10.2139/ssrn.1485365

Cited by 107 publications

(149 citation statements)

References 15 publications

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“…In the case of Spain, a few papers have studied the role of immigration on housing markets (Talavull de la Paz, 2003;Sosvilla-Rivero, 2008;García-Montalvo, 2010;Nicodemo & Raya, 2012). González & Ortega (2013) provide estimates of the impact of immigration on Spanish house prices and construction over the period 2000-2010, but their aim and approach is different from those of the present paper 5 .…”

Section: Introductionmentioning

confidence: 91%

“…26 In particular because González & Ortega (2013) find that immigrants have a positive causal impact on housing construction.…”

Section: Identifying the Impact Of Immigrant Demand On Pricesmentioning

confidence: 99%

“…The impact of mobility on the interpretation of the reduced-form area estimates is generally inferred from the sign of the total estimate. In the case of the impact on house prices, if the reduced-form estimate is positive it is assumed that natives are little or not displaced by immigrants (González & Ortega, 2013). The sign of the total effect is also interpreted as a test of "native complete displacement" (Saiz, 2007).…”

Section: Identifying the Impact Of Immigrant Demand On Pricesmentioning

confidence: 99%

“…They conclude that these results show at least no-displacement of natives. González & Ortega (2013) (2015). Despite this perception, there is still little evidence on significant displacement, at least in the US Peri & Sparber (2011).…”

Section: Identifying the Impact Of Immigrant Demand On Pricesmentioning

confidence: 99%

“…This question has been discussed in the immigration literature but this is the first paper to directly address it both formally and empirically. Most existing papers (Saiz, 2007;Cortés, 2008;González & Ortega, 2013) rely on the existing US evidence 9 to argue that native area displacement due to immigration is small or not large enough to cancel out increased demand stemming from increased area population so its impact on the estimates is irrelevant. My findings suggest that the impact of immigrants on native location is of greater importance than it has driven attention to in the literature, and imply that one needs to provide estimates of its size when making claims about its role on the estimation of the effects.…”

Section: Introductionmentioning

confidence: 99%

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Decomposing the Impact of Immigration on House Prices

Sanchis-Guarner

2017

SSRN Journal

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An inflow of immigrants into a region impacts house prices in three ways. For a fixed level of local population, housing demand rises due to the increase in foreign-born population. In addition, immigrants can influence native location decisions and induce additional shifts in demand. Finally, changes in housing supply conditions can in turn affect prices. Existing reduced form estimates of the effect of immigration on house prices capture the sum of all these effects. In this paper, I propose a methodology to identify the different channels driving the total effect. I show that, conditional on supply, total changes in housing demand can be decomposed into the sum of direct immigrant demand and indirect demand changes from relocated population. The size and sign of the indirect demand effect depends on the impact of immigration on native mobility. I use Spanish data during the period 2001-2012 to estimate the different elements of the decomposition, applying an instrumental variables strategy to obtain consistent coefficients. The results show that overlooking the impact of immigration on native location induces a sizeable difference between the total and the immigrant demand effects, affecting the interpretation of the estimates.

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Section: Introductionmentioning

confidence: 91%

“…26 In particular because González & Ortega (2013) find that immigrants have a positive causal impact on housing construction.…”

Section: Identifying the Impact Of Immigrant Demand On Pricesmentioning

confidence: 99%

Section: Identifying the Impact Of Immigrant Demand On Pricesmentioning

confidence: 99%

Section: Identifying the Impact Of Immigrant Demand On Pricesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Decomposing the Impact of Immigration on House Prices

Sanchis-Guarner

2017

SSRN Journal

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Internal migration dynamics in Spain: Winners and losers from the recent economic recession

Hierro

Maza

Villaverde

2018

Population Space and Place

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This paper analyses the impact of the 2008 economic crisis on the spatial distribution of interprovincial migration in Spain, with a particular focus on changes in provinces' relative attractiveness. First, the paper examines the distribution of the net migration rate across provinces over the period 2002 . Next, by comparing the precrisis (2002 and crisis (2008)(2009)(2010)(2011)(2012)(2013) periods, the paper investigates which provinces became more attractive locations for migrants during the crisis and explores some of the factors behind it. The empirical evidence unveils two key results. First, major changes took place in spatial patterns of migration flows in Spain in the wake of the 2008 recession. Second, the rich provinces that best weathered the economic downturn, especially those with a relatively small construction sector and a good performance of industry and services, became appealing destinations during the crisis.

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