Work

Asian immigrants, school quality, and the U.S. housing market

Year: 2026

Type: article

Abstract: This paper investigates how Asian immigrants affect U.S. housing prices and identifies the mechanisms underlying these effects. Using annual county-level data from 2009 to 2018 and a dual instrumental variable approach, we decompose the overall impact of Asian immigrants into education-related and non-education channels. We find that roughly 30%–40% of the housing price increase associated with Asian immigration is driven by the capitalization of improved educational amenities, while the remaining 60%–70% reflects non-education forces, such as home-biased foreign capital inflows and other neighborhood changes. The education-related capitalization effects are greater in counties with a higher share of Asian school-aged children, underscoring the key insight that immigrant composition — specifically, who arrives — matters for how immigration shapes local housing markets.

Source: Journal of Urban Economics

DOI: 10.1016/j.jue.2026.103860

Authors: Amanda Ang, Eunjee Kwon, Siqi Zheng

Institutions: Aalto University, University of Cincinnati, Massachusetts Institute of Technology

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Quality education

Open Access status: hybrid

Estimated APC paid: $5,080