The Effect of Immigration on the German Housing Market
Umut Unal (),
Bernd Hayo () and
Isil Erol ()
Additional contact information
Isil Erol: Oezyegin University
MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)
This study provides evidence of the causal impact of immigration on German house prices, flat prices, and flat rents using an extensive dataset covering 382 administrative districts over the period 2004âˆ’2020. Employing a panel-data approach and a manually constructed past settlement instrument, we show that international migration has a significantly positive short-term effect on German flat prices and rents. House prices are not significantly affected. We estimate that an increase in international migration of 1% of the initial district population causes a hike in flat prices of up to 3% as well as a hike in flat rents of about 1%. The increase in flat prices is more than twice as high as this at the lower end of the market, whereas the flat rental market demonstrates a more linear response. We also discover that immigrationâ€™s impact on flat prices and rents does not significantly differ across rural and urban areas within the country.
Keywords: Immigration; Housing prices; Rents; Instrumental variable; IV quantile regression; German housing market (search for similar items in EconPapers)
JEL-codes: J61 R23 R31 (search for similar items in EconPapers)
Pages: 34 pages
New Economics Papers: this item is included in nep-eur, nep-int, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://www.uni-marburg.de/en/fb02/research-groups ... ers/38-2022_unal.pdf First 202238 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:202238
Access Statistics for this paper
More papers in MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) Contact information at EDIRC.
Bibliographic data for series maintained by Bernd Hayo ().