Why Housing Prices not only matter for your wallet; a study on the effect of housing prices on the ethnic composition of neighbourhoods in the city of Amsterdam

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2023-07-27

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en

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The research question of this thesis is what the effect of housing prices on the ethnic composition in neighbourhoods among other factors is. Ethnic composition is defined as the percentage of people with a non-western migration background (as compared to other ethnic groups). Answering this research questions is done by a quantitative data analysis with data taken from the city of Amsterdam, with help of supporting literature. Furthermore, ethnicity theory is used, to gain deeper understanding on what ethnicity is and how ethnicity is formed. The obtained result was that other factors (besides housing prices) which influence ethnic composition of neighbourhoods are homogeneity, location and average income of a neighbourhood. Of these various factors, homogeneity turned out to be the most influential factor (0.993% per 1% increase). After homogeneity, average income turned out to be the largest (-0.764%), and the location was the fourth factor (0.377%). The housing price came in as third factor: when the housing price increased by 1%, the ethnic composition decreased by 0.452%. The main reasons for these effects are native flight and the desire of people to live in groups with whom they share similar characteristics (desire to live in homogeneous neighbourhoods).

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Faculteit der Managementwetenschappen