EconPapers    
Economics at your fingertips  
 

A Model of the Australian Housing Market

Trent Saunders and Peter Tulip
Additional contact information
Trent Saunders: Reserve Bank of Australia

RBA Research Discussion Papers from Reserve Bank of Australia

Abstract: We build an empirical model of the Australian housing market that quantifies interrelationships between construction, vacancies, rents and prices. We find that low interest rates (partly reflecting lower world long-term rates) explain much of the rapid growth in housing prices and construction over the past few years. Another demand factor, high immigration, also helps explain the tight housing market and rapid growth in rents in the late 2000s. A large part of the effect of interest rates on dwelling investment, and hence GDP, works through housing prices.

Keywords: housing; construction; house prices; vacancies; rents (search for similar items in EconPapers)
JEL-codes: E17 R30 R31 (search for similar items in EconPapers)
Date: 2019-03
New Economics Papers: this item is included in nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-01.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:rba:rbardp:rdp2019-01

Access Statistics for this paper

More papers in RBA Research Discussion Papers from Reserve Bank of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Paula Drew ().

 
Page updated 2021-09-05
Handle: RePEc:rba:rbardp:rdp2019-01