EFFECTS OF IMMIGRATION ON HOUSING PRICES IN CANADA
An extensive econometric analysis based on data at census division levels obtained from the 1996, 2001, and 2006 population censuses indicates a statistically significant but small effect of immigration on prices of privately owned dwellings in Canada. An out-migration of the native born from areas where new immigrants settle or an increased supply of housing due to expectations of higher demand may have caused this result. Therefore, any housing policy in Canada aimed at creating incentives for immigrants to invest in housing should be based more on expectations of social externalities than on economic benefits associated with immigrant housing.
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