Does immigration increase housing prices?
Economists looking across 14 countries concluded that immigration increases housing prices. A 2007 U.S. study found that each new immigrant across metropolitan areas added 11.6 cents to average housing values. That raises costs for new renters and buyers, while enriching existing property owners--40 million immigrants over time generated $3.7 trillion in gains, a pro-immigration group calculated.
In diverse or economically depressed neighborhoods, the effect is largely positive. In neighborhoods favored by native populations, effects vary. Looking at census tracts, U.S. economists found housing values fell 6% as the share of immigrants rises to 30%. The relationship was more negative when Black immigrants moved in. "Natives are willing to pay a premium to live in predominantly native neighborhoods," Wharton's Susan Wachter explained.
