Impact of immigration on the price of Spanish housing: the 21st century
DOI:
https://doi.org/10.37230/CyTET.2023.215.3Keywords:
Housing market, Housing prices, InmigrationAbstract
This research aims to analyse the impact of immigration on house prices in Spain from 2001 to 2019, by using annual observations from 50 provinces, adopting the SAIZ approach (2007). It also analyses the effect that emigration may have had on the rental housing market, a phenomenon that has not been investigated in the Spanish case so far. The main result obtained is that during the years of the real estate bubble, the increase in immigration was a factor that helped to increase housing prices up to 2.5%. Subsequently, after the burst of the bubble, immigration becomes a devaluing element that reduces prices by 1.12%. In turn, it is shown that the net balance of the whole analyzed period is negative. So, the downward influence on the price caused by the recessive stage and the departure of immigrants takes precedence over the upward pressure induced by their entry at the beginning of the period. Moreover, the arrival of immigration in the period from 2010 to 2019 had an impact on the increase in rental princes, accounting for a 5.9% increase.
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