Abstract
This paper studies the impact of foreign buyer taxes on house prices using recent law changes in Canada, Australia, and New Zealand. Counterfactual house prices are estimated for each treated location, combining prediction techniques from machine learning with inference methods from the synthetic control method literature. In general, the foreign buyer taxes we studied had negative, large, and persistent effects on house price growth. We found bigger effects in locations with higher taxes and with larger immigrant shares. Alternative outcome variables, including population growth, GDP growth, and unemployment rates, were either unaffected or slightly affected in ways that do not confound our results.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
