Immigration and House Prices in the UK

32 Pages Posted: 9 Sep 2015

See all articles by Filipa Sa

Filipa Sa

King's College London; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: September 2015

Abstract

This article studies the effect of immigration on house prices in the UK. It finds that immigration has a negative effect on house prices and presents evidence that this negative effect is due to the mobility response of the native population. Natives respond to immigration by moving to different areas and those who leave are at the top of the wage distribution. This generates a negative income effect on housing demand and pushes down house prices. The negative effect of immigration on house prices is driven by local areas where immigrants have lower education.

Suggested Citation

Sa, Filipa G., Immigration and House Prices in the UK (September 2015). The Economic Journal, Vol. 125, Issue 587, pp. 1393-1424, 2015. Available at SSRN: https://ssrn.com/abstract=2657822 or http://dx.doi.org/10.1111/ecoj.12158

Filipa G. Sa (Contact Author)

King's College London ( email )

150 Stamford Street
London, SE1 9NN
United Kingdom

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

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