Abstract
AbstractWe 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.
Sign-in/Register to access full text options 
Free) 
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 call
