The positive association of rent growth and immigrant inflows is pervasive in time series for all metropolitan areas. The author uses instrumental variables based on a “shift-share” of national levels of immigration into metropolitan areas. Conditioning on other variables, an immigration inflow equal to 1% of the city population is associated with increases in rents and housing values of about 1%. The results suggest an economic impact that is an order of magnitude bigger than that found on labor markets
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Working Paper
Immigration and Housing Rents in American Cities
June 2003
WP 03-12 – Is there a local economic impact of immigration? Immigration pushes up rents and housing values in destination cities.