Date of this Version
The Review of Economics and Statistics
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.
© 2003 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Saiz, A. (2003). Room in the Kitchen for the Melting Pot: Immigration and Rental Prices. The Review of Economics and Statistics, 85 (3), 502-521. http://dx.doi.org/10.1162/003465303322369687
Date Posted: 27 November 2017
This document has been peer reviewed.