A Life Cycle Analysis of Housing Affordability Options for First Home Owner-Occupiers in Australia

12 Pages Posted: 3 Sep 2005

See all articles by Ross S. Guest

Ross S. Guest

Griffith University - School of Accounting and Finance - Gold Coast Campus

Abstract

This paper presents a life cycle analysis of several policies for improving housing affordability for first home owner-occupiers in Australia: the First Home Owner Grant, housing equity partnerships and deposit loans. The analysis is by simulation of a housing tenure choice model in which a representative adult household makes a lifetime plan concerning the timing of the first home purchase, and the amount of housing and non-housing consumption in each period. An insight from the life cycle framework is that policies to improve housing affordability can have a life cycle timing effect on housing demand and house prices.

Suggested Citation

Guest, Ross, A Life Cycle Analysis of Housing Affordability Options for First Home Owner-Occupiers in Australia. Economic Record, Vol. 81, No. 254, pp. 237-248, September 2005. Available at SSRN: https://ssrn.com/abstract=783240

Ross Guest (Contact Author)

Griffith University - School of Accounting and Finance - Gold Coast Campus ( email )

PMB 50 Gold Coast Mail Centre
9726 Queensland
Australia

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