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Does Immigration Depreciate Residential Land Prices? Case of Tokyo

  • Akinori Tomohara EMAIL logo


This study investigates the effects of immigration on residential land prices in urban Tokyo. A rapid increase in immigrants in Tokyo raises the concern that immigration may depreciate land prices because of the negative image emerging from the perception that some immigrants might create disharmony in society. However, our analysis denies this possibility; for every 1% increase in immigrant ratio (i.e., the proportion of immigrants in the total population), the residential land prices increase by 12%. Although the literature explains that a negative immigration effect occurs when the analysis uses small geographic units, the results suggest that even a positive effect can occur under small geographic units. The implications of the current results are complicated. While the concern of immigration-induced land price depreciation is unfounded, this raises another concern—that of asset inequality between land owners and tenants.

JEL Classification: F22; F60; R39

Corresponding author: Akinori Tomohara, Department of International Economics, Aoyama Gakuin University, Building No. 8–421, 4-4-25 Shibuya, Shibuya-ku, Tokyo 150-8366, Japan, E-mail:

Award Identifier / Grant number: 16K03650

Award Identifier / Grant number: 21K01506


I appreciate Yuchen Lu for his research assistance and Editage ( for helping with English language editing.

  1. Research funding: This work was supported by the Japan Society for the Promotion of Science under Grants-in-Aid for Scientific Research (No. 16K03650; 21K01506).


Fixed effect model under the standard least squares approach

Immigrant ratio 0.079***
Crime per capita −8.455***
Population density 1.E-04***
Local tax liability per capita 0.147
Constant 9.043***
Number of observations 207
  1. ***Statistically significant at 1% level.


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Received: 2021-05-30
Accepted: 2021-11-26
Published Online: 2021-12-14

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