The effect of non-western immigrants on sold house prices in municipalities in The Netherlands between 1998 and 2007

This paper empirically analyses the effect of non-western immigrants on sold house price in municipalities in The Netherlands. This paper finds that if the share of non-western immigrants increases with one percent, the average sold house price decreases with 1,73 percent of a standard deviation. Small significant effects are found for an increase in the share of non-western immigrants of one year and two years. This effect can partly be explained by the negative view many people tend to have towards immigrants. When using a fixed effect model, this paper finds that if the share of non-western immigrants increases with one percent, sold house prices decrease with almost four percent of a standard deviation. This is equal to a decrease of almost 3000 euros. No significant effects are found for increases in the share of non-western immigrants of one year and two years. One potential reason for the insignificance of these variables is the little variation within municipalities itself.