US Immigration Levels,Urban Housing Values,and their Implications for Capital Share

This article applies previously estimated effects of immigration on housing values to urban counties in the United States. Our findings here also help estimate how much of the increase in the net capital share of income since 1970 as observed by Piketty ( 2014 ) is caused by immigration. We find that in most urban counties in the United States, increased levels of immigration have had a modest but non‐negligible effect on the level of real estate prices and, per Rognlie ( 2015 ), likely capital share. These estimates provide hard numbers for the public debate over immigration policy in the United States, with implications elsewhere as well.