Real Estate Papers

Document Type

Journal Article

Date of this Version

8-2003

Publication Source

The Review of Economics and Statistics

Volume

85

Issue

3

Start Page

502

Last Page

521

DOI

10.1162/003465303322369687

Abstract

This paper studies the response of housing markets to immigration shocks. Following Card (1990), I examine the changes in rental prices in Miami and three comparison groups after the Mariel boatlift. This exogenous immigration shock added an extra 9% to Miami's renter population in 1980. I find that rents increased from 8% to 11% more in Miami than in the comparison groups between 1979 and 1981. By 1983 the rent differential was still 7%. Rental units of higher quality were not affected by the immigration shock. Units occupied by low-income Hispanic residents in 1979 experienced an extra 8% differential hike with respect to other low-income units. Relative housing prices moved in the opposite direction from rents in the short run.

Copyright/Permission Statement

© 2003 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Date Posted: 27 November 2017

This document has been peer reviewed.