Rising immigration and falling native-born home ownership: a spatial econometric analysis for New Zealand

Abstract

In the last two decades the foreign-born share of New Zealand’s population increased far faster than in other rich countries. We apply spatial econometric models to a three-wave panel of 1851 census area units to examine impacts of higher foreign-born population shares on home ownership rates, especially for native-born residents. A standard deviation higher foreign-born share is associated with a one-sixth of a standard deviation lower ownership rate for the native-born. Much of the impact is indirect, with higher foreign-born shares in one area spilling over into lower native-born ownership rates elsewhere.