The Effects of Immigration on the Housing Market: Canada

Abstract

This paper investigates the relationship between immigration and house prices in Canada using econometric methods. The study employs a panel data set covering Canadian provinces over the period 2005-2021 and uses a two-way fixed effects model to estimate the impact of immigration on house prices while controlling for other factors that may affect housing markets. The results show that immigration, on average, has no significant effect on housing prices. However, it can have negative effects in certain cases. The study also finds that the correlation between immigration and house prices varies across different regions in Canada. These findings have important implications for policymakers and stakeholders in the housing market, particularly in understanding the potential impact, or lack thereof, of immigration policies on housing affordability.