Immigration and Housing Rents in Canada: A Panel Data Analysis

Abstract

This study examines the impact of new immigration on housing rent, using Canadian province-level panel data from 1983 to 2010. In its estimations, it utilises econometric methods such as panel unit roots, panel co-integration regressions and panel vector error correction models. Both fully-modified ordinary least squares and dynamic ordinary least squares models suggest that immigration flow has a significant positive impact on housing rent in the long run. The panel vector error correction model analysis suggests both short run and long run causal impacts of new immigration on rent.