The influx of immigrants to a given metropolitan statistical area (MSA) is associated with an increase in rents and house prices in that area, while seeming to raise rents and prices in neighboring metropolitan areas. The magnitude of the immigration coefficients varies widely, and the spillover (penetrating) effects appear to be much larger. The much higher coefficient of the spillover effect, together with circumstantial evidence, suggests that the influx of immigrants to a given metropolitan area (MSA) generates migration of the indigenous population to neighboring metropolitan areas (MSAs).