Housing Market Dynamics and Regional Migration in Britain

57 Pages Posted: 10 Nov 2006

See all articles by Gavin Cameron

Gavin Cameron

University of Oxford - Department of Economics (Deceased)

John Muellbauer

University of Oxford - Department of Economics; Centre for Economic Policy Research (CEPR)

Anthony Murphy

University of Oxford - Nuffield Department of Medicine

Date Written: September 2006

Abstract

Economic conditions exert a strong influence on regional migration. On the one hand, strong labour market conditions, as exemplified by low unemployment rates and high earnings, draw migrants into regions. On the other hand, strong housing market conditions can prevent movement since expensive housing can deter migrants and commuting may often be an alternative. This can be thought of as giving rise to a migration equilibrium, where high house prices choke off migration caused by strong labour market conditions. Expected capital gains in housing and expected earnings growth however, can offset high levels of house prices, effects ignored in previous literature. Migration can also be influenced more directly by the availability of housing relative to population without this being mediated through prices. This paper presents evidence from a 28 year panel on net and gross migration for the regions of Britain that is broadly in accord with these expectations.

Keywords: Regional migration, house prices, expected capital gains, contiguity, Great Britain, regional panel

JEL Classification: C33, J19, R3

Suggested Citation

Cameron, Gavin and Muellbauer, John and Murphy, Anthony, Housing Market Dynamics and Regional Migration in Britain (September 2006). CEPR Discussion Paper No. 5832, Available at SSRN: https://ssrn.com/abstract=944063

Gavin Cameron

University of Oxford - Department of Economics (Deceased)

John Muellbauer (Contact Author)

University of Oxford - Department of Economics ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom
+44 1865 278 583 (Phone)
+44 1865 278 557 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Anthony Murphy

University of Oxford - Nuffield Department of Medicine ( email )

New Road
Oxford, OX1 1NF
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
24
Abstract Views
1,521
PlumX Metrics