Zeno Adams
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Dr.
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Adams
First name
Zeno
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zeno.adams@unisg.ch
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+41 71 224 70 14
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zeno.adams

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  • Publication
    Immigration, Real Estate Prices and the Consumption Decision of Native Households
    ( 2016)
    Blickle, Kristian
    ;
    Adams, Zeno
    Since house prices govern the consumption decisions of renters and owners alike, changing house prices can have far-reaching macroeconomic consequences. We analyze how the disposable income and consumption decisions of households are affected by exogenous house price changes in Switzerland. We look at consumption of both housing and nondurable goods to establish a comprehensive picture. We ensure that our house price variation is exogenous by instrumenting house prices with origin-shift immigration. Our unique dataset includes information on every immigrant that entered Switzerland between 1990 and 2013, house price data for every community, and detailed survey data for over 5000 households. We can show three things. Firstly, different types of immigrants influence house prices to different degrees. This finding allows us to structure a valid instrument while also contributing to an ongoing European discussion over the effects of immigration. Secondly, rising house prices reduce the disposable income of renters. This is particularly pronounced for renters who are forced to relocate in times of rising prices. We find, therefore, that renters consume less while owners do not necessarily consume more. This is different from the US/UK context and may reflect the inability of households to extract home equity in central Europe. Thirdly, households transition to ownership less frequently or move away more often following an exogenous price increase. We add novel insights on household consumption and tenure-/location choice in response to exogenous changes in the cost of housing.
    Type: conference paper
    URI: https://www.alexandria.unisg.ch/handle/20.500.14171/104906
  • Publication
    Immigration, Real Estate Prices and Consumption Effects for Native Households
    (International Real Estate Business School, 2016)
    Adams, Zeno
    ;
    Blickle, Kristian
    Past studies find that high rates of immigration can have a pronounced effect on both, housing rents and prices (see e.g. Saiz, 2011 for a discussion). These changes in the value of real estate will impact different types of native households in different ways. On the one hand, households that own a home may be able to consume a wealth gain and experience an increase in utility. Households that rent, on the other hand, may be forced to migrate to less attractive regions. In this paper, we analyze the effect of high rates of immigration on the real estate market and, in a second step, the impact that these price changes have on the location- and tenure-choice of families who live in affected areas. For our empirical analysis, we use highly granular data from Switzerland. Switzerland presents an especially useful case for our purposes for three reasons. First, it has experienced substantial net immigration for several years (193,000 persons alone in 2013 according to the Bundesamt für Statistik, 2015). Secondly, Switzerland is comparable, in culture and language, to its neighbours: Germany, France, Italy, Austria, and Liechtenstein. Our results may be applicable to these countries, which have themselves faced substantial immigration recently. Our research relates to work on the impact that immigration exerts on real estate prices (Ley et al. 2013, 2001; Frey, 1996) but also on the community composition (Borjas, 2002, 2013). Our work consequently adds to the growing field of gentrification (Guerrieri et al. 2010; Becker and Murphy, 2003; Borjas, 1995) and on factors affecting home ownership (Gyourko and Linneman, 1995, Andrews and Sánchez, 2011). We contribute to the above mentioned literature in several ways. First, we use highly detailed immigration data that allows us to disentangle which type of immigration drives price changes. We are furthermore able to observe the response of local households to price changes while controlling for a number of confounding influences. Finally, we extend the gentrification literature to a new country, strongly affected by immigration.
    Type: book section
    URL: http://www.eres-2016.com/uploads/Book-of-Abstracts.pdf
    URI: https://www.alexandria.unisg.ch/handle/20.500.14171/104836
  • Publication
    Type: working paper
    Volume: 2018
    Issue: 2018/09
    URI: https://www.alexandria.unisg.ch/handle/20.500.14171/100777
  • Publication
    Type: working paper
    Volume: 2016/15
    Issue: 15
    URI: https://www.alexandria.unisg.ch/handle/20.500.14171/104159