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Independent Living and Home Ownership: An Analysis of Australian Youth

Author

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  • Steven C. Bourassa
  • Donald R. Haurin
  • R. Jean Haurin
  • Patric H. Hendershott

Abstract

This study extends economic models of the joint decisions of living arrangement and home ownership. The cost of shelter is an important factor in determining whether youth live independently (apart from parents and other non‐related adults), and the cost of home ownership relative to renting is important to the tenure decision (choice of owning or renting). Simulations suggest that the post‐1985 decline and eventual removal of the Australian subsidy for first‐time home owners has lowered the home ownership rate among young households by 23 per cent, the equivalent of slowing the time to first ownership by two years.

Suggested Citation

  • Steven C. Bourassa & Donald R. Haurin & R. Jean Haurin & Patric H. Hendershott, 1994. "Independent Living and Home Ownership: An Analysis of Australian Youth," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(3), pages 29-44, July.
    • Handle: RePEc:bla:ausecr:v:27:y:1994:i:3:p:29-44
    DOI: 10.1111/j.1467-8462.1994.tb00846.x
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    9. repec:brs:ecchap:12 is not listed on IDEAS
    10. Haurin Donald R. & Hendershott Patric H. & Kim Dongwook, 1994. "Housing Decisions of American Youth," Journal of Urban Economics, Elsevier, vol. 35(1), pages 28-45, January.
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    Citations

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    Cited by:

    1. Steven C. Bourassa, 1996. "Measuring the Affordability of Home-ownership," Urban Studies, Urban Studies Journal Limited, vol. 33(10), pages 1867-1877, December.
    2. Tan, Teck Hong & Khong, Kok Wei, 2012. "The Link between Homeownership Motivation and Housing Satisfaction," MPRA Paper 46890, University Library of Munich, Germany.
    3. Peter Neuteboom & Dirk Brounen, 2011. "Assessing the Accessibility of the Homeownership Market," Urban Studies, Urban Studies Journal Limited, vol. 48(11), pages 2231-2248, August.
    4. Daina McDonald, 2006. "150 Issues of The Australian Economic Review: The Changing Face of a Journal over Time," Melbourne Institute Working Paper Series wp2006n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Clara Mulder, 2013. "Family dynamics and housing," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(14), pages 355-378.
    6. Tan, Teck Hong, 2009. "Home owning motivation in Malaysia," MPRA Paper 34906, University Library of Munich, Germany.
    7. Richard Johnson & Julie DaVanzo, 1998. "Economic and cultural influences on the decision to leave home in Peninsular Malaysia," Demography, Springer;Population Association of America (PAA), vol. 35(1), pages 97-114, February.
    8. Agnieszka Sompolska-Rzechuła & Agnieszka Kurdyś-Kujawska, 2022. "Generation of Young Adults Living with Their Parents in European Union Countries," Sustainability, MDPI, vol. 14(7), pages 1-27, April.
    9. Judith Yates, 2000. "Is Australia's Home-ownership Rate Really Stable? An Examination of Change between 1975 and 1994," Urban Studies, Urban Studies Journal Limited, vol. 37(2), pages 319-342, February.
    10. Cobb-Clark, Deborah A., 2008. "Leaving Home: What Economics Has to Say about the Living Arrangements of Young Australians," IZA Discussion Papers 3309, Institute of Labor Economics (IZA).
    11. Anna Białek, 2003. "Strategies of Subsidizing Private Housing Property on the Example of IBD (Partial Buying of Percentage) and MID (Limited Tax Deduction of Percentage)," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 9.
    12. Steven Garasky, 2000. "Understanding the Employment Experiences and Migration Patterns of Rural Youth and Young Adults," JCPR Working Papers 143, Northwestern University/University of Chicago Joint Center for Poverty Research.
    13. Serena Trucchi, 2011. "How credit markets affect homeownership: an explanation based on differences between Italian regions," CeRP Working Papers 122, Center for Research on Pensions and Welfare Policies, Turin (Italy).
    14. Jie Chen & Zan Yang, 2017. "What do young adults on the edges of homeownership look like in big cities in an emerging economy: Evidence from Shanghai," Urban Studies, Urban Studies Journal Limited, vol. 54(10), pages 2322-2341, August.
    15. Cecilia Enström Öst, 2012. "Parental Wealth and First-time Homeownership: A Cohort Study of Family Background and Young Adults’ Housing Situation in Sweden," Urban Studies, Urban Studies Journal Limited, vol. 49(10), pages 2137-2152, August.
    16. Judith Yates, 2003. "‘The more things change?’ An overview of Australia’s recent home ownership policies," European Journal of Housing Policy, Taylor and Francis Journals, vol. 3(1), pages 1-33.

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    More about this item

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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