Supply and demand, interest rates and location; these are all well-known factors that can influence the value of a property.
But a factor that you’ve likely not seen on that list is: attitude to immigration.
According to a new report by Deakin University researchers, there’s a positive correlation between house prices and locals’ attitudes to immigration.
Because immigration increases demand for housing and accommodation, pushing up property values.
So essentially, residents who are more open to living next door to immigrants enjoy greater rises in property prices as a result.
But if you’re less receptive to living next door to immigrants, this can result in ‘out-migration’ of local residents, meaning that property values in that area – which would have otherwise risen – aren’t going up any further.
And since locals with negative attitudes to immigrants are vacating their homes, they aren’t reaping any of the benefits to property price growth.
“In countries where locals dislike living next to immigrants … immigration has a smaller effect on house prices.”
Deakin University researcher Chris Doucouliagos said the research dispelled myths that immigration suppressed property prices for locals.
“When you look at the evidence, none of those claims stand to scrutiny. We find no evidence that it reduces asset values,” he told Domain.
According to the report, house prices across several countries have been unaffected by immigration.
“There is no case for restricting immigration on the basis of house prices,” said Doucouliagos.
“Our takeaway is ‘love thy neighbour’.”
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