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

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  • ROSS S. GUEST

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.

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  • Ross S. Guest, 2005. "A Life Cycle Analysis of Housing Affordability Options for First Home Owner‐Occupiers in Australia," The Economic Record, The Economic Society of Australia, vol. 81(254), pages 237-248, September.
    • Handle: RePEc:bla:ecorec:v:81:y:2005:i:254:p:237-248
    DOI: 10.1111/j.1475-4932.2005.00258.x
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    References listed on IDEAS

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    Cited by:

    1. Creina Day, 2018. "Australia's Growth in Households and House Prices," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 51(4), pages 502-511, December.
    2. Day, Creina & Guest, Ross, 2016. "Fertility and female wages: A new link via house prices," Economic Modelling, Elsevier, vol. 53(C), pages 121-132.
    3. Ross Guest & Robyn Swift, 2010. "Population Ageing and House Prices in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(3), pages 240-253, September.
    4. Creina Day & Ross S. Guest, 2014. "The Effect of Gender Wages and Working Age Populations on Fertility and House Prices," Crawford School Research Papers 1401, Crawford School of Public Policy, The Australian National University.
    5. Liu, Lu, 2023. "Mortgage loan and housing market," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 736-749.

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