The European Refugee Crisis and House Prices: Evidence from the United Kingdom
34 Pages Posted: 15 Nov 2016 Last revised: 13 Oct 2018
Date Written: May 9, 2018
We estimate the effect of asylum seeker dispersal on house prices in the UK from 2004 to 2015. Using two empirical models of house transactions prices and asylum seeker inflows, we find that asylum seekers have small but non-trivial negative effects on housing prices, but only for lower priced and lower quality housing units. Our panel data regressions rely on variation across time and local areas, and account for potential endogeneity bias using instrumental variables, to identify these causal effects. Time series regressions, on the other hand, depend only on plausibly exogenous nationwide inflows of new asylum seekers.
Suggested Citation: Suggested Citation