Abstract
SummaryThis study examines the behavior of Swiss house prices in relation to immigration flows for 85 regions from 2001 to 2006. The results show that the nexus between immigration and house prices holds even in an environment of low house price inflation and modest immigration flows. An immigration inflow equal to 1 % of an area’s population is coincident with an increase in prices for single-family homes of about 2.7 %, a result consistent with previous studies. The overall immigration effect for single-family houses captures almost two-thirds of the total price increase.
Highlights
Recent evidence from country studies on house prices suggests that the effect of immigration on local house prices is a global phenomenon. Saiz (2007) estimates that an immigrant inflow equal to 1% of a city’s population results in a 2% increase in house prices for U
The objective of this paper is to show that the nexus between house prices and immigration holds for episodes of low house price inflation and modest immigration inflows
We show that immigration flows are coincident with increases in house prices using price indexes of three different home types
Summary
Recent evidence from country studies on house prices suggests that the effect of immigration on local house prices is a global phenomenon. Saiz (2007) estimates that an immigrant inflow equal to 1% of a city’s population results in a 2% increase in house prices for U. Stillman and Maré (2008) uncover separate results for migrant groups. Gonzalez and Ortega (2013) show that the price effect through immigration is higher for the Spanish housing market. Akbari and Aydede (2012) instead find muted immigration effects for the Canadian housing market. They find that the inflows of returning New Zealanders are related to rising house prices but that inflows of new foreign immigrants are not
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