Immigration and regional housing markets: prices, rents, price-to-rent ratios and disequilibrium. Issue 3 (4th March 2022)

• Record Type: Journal Article
• Authors: Nguyen, Thi Thu Ha; Balli, Hatice Ozer; Balli, Faruk; Syed, Iqbal A.
• Is Part Of: Regional studies. Volume 56:Issue 3(2022)
• Page Start: 420
• Page End: 432
• Publication Date: 2022-03-04
• Subjects: housing bubble -- rental yields -- user cost equilibrium -- migration -- time–frequency analysis -- wavelet coherence scalograms; J61 -- R11 -- R23 -- R31; Regional planning -- Periodicals; Regional planning -- Great Britain -- Periodicals; 307.14
• DOI: 10.1080/00343404.2021.1955097
• Languages: English
• ISSNs: 0034-3404

Abstract

ABSTRACT: The study examines the relationship between immigration and regional housing markets using wavelet coherence analysis in conjunction with Granger causality tests. We find that while there are some regional differences in the relationships, the impact of immigration on house rents is consistently more pronounced than the impact on house prices and, in the short to medium term, an increase in immigration leads to a decrease in price-to-rent ratios. The study uses data sets for different regional housing markets in New Zealand, a country with one of the highest immigration-to-population ratios in the world during the sample period of 1996–2017.