Economics at your fingertips  

Channels from Housing Wealth to Consumption

Rachel Ong, Sharon Parkinson, Beverley A. Searle, Susan J. Smith and Gavin Wood
Authors registered in the RePEc Author Service: Rachel Ong ViforJ ()

Housing Studies, 2013, vol. 28, issue 7, 1012-1036

Abstract: This paper uses micro-data from two national panel surveys to analyze the flow of wealth from residential property onto households' balance sheets, where it is available for discretionary spending. The examples are Australia and the UK-two of the world's most entrenched nations of owner occupation, both with relatively complete mortgage markets. We focus on the early 2000s, which set the scene for an unprecedented wave of housing equity withdrawal. We consider equity released through sales and through additional borrowing. The findings show that equity extraction overall is not only (or even) a function of higher incomes, greater wealth, and older age; rather it occurs across the life course and is linked to pressing spending needs. We draw attention in particular to the growing social and economic significance of in situ equity borrowing-a practice whose financial buffering effects may form a short-lived prelude, rather than a sustainable alternative, to trading on or selling up.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1080/02673037.2013.783202

Access Statistics for this article

Housing Studies is currently edited by Chris Leishman, Moira Munro, Ray Forrest, Alex Schwartz, Hal Pawson and John Flint

More articles in Housing Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2023-03-26
Handle: RePEc:taf:chosxx:v:28:y:2013:i:7:p:1012-1036