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Dwelling Prices and Household Income

Author

Listed:
  • Ryan Fox

    (Reserve Bank of Australia)

  • Richard Finlay

    (Reserve Bank of Australia)

Abstract

This article analyses trends in dwelling prices over the past four decades through the prism of the price-to-income ratio. Exactly which measures of dwelling prices and household income are the most appropriate depends on the question being analysed, but the various measures considered here all show broadly similar trends. Comparing equivalently defined price-to-income ratios across countries, Australia’s experience appears to be broadly in line with those of other advanced economies, with the exception of the United States and Japan which both have particularly low ratios.

Suggested Citation

  • Ryan Fox & Richard Finlay, 2012. "Dwelling Prices and Household Income," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 13-22, December.
    • Handle: RePEc:rba:rbabul:dec2012-02
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2012/dec/pdf/bu-1212-2.pdf
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    References listed on IDEAS

    as
    1. Wing Hsieh & David Norman & David Orsmond, 2012. "Supply-side Issues in the Housing Sector," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 11-20, September.
    2. Rayna Brown & Rob Brown & Ian O’Connor & Gregory Schwann & Callum Scott, 2011. "The Other Side of Housing Affordability: The User Cost of Housing in Australia," The Economic Record, The Economic Society of Australia, vol. 87(279), pages 558-574, December.
    3. Luci Ellis, 2010. "The Housing Meltdown: Why Did It Happen in the United States?," International Real Estate Review, Global Social Science Institute, vol. 13(3), pages 351-394.
    4. Luci Ellis, 2006. "Housing and Housing Finance: The View from Australia and Beyond," RBA Research Discussion Papers rdp2006-12, Reserve Bank of Australia.
    5. Mariano Kulish & Anthony Richards & Christian Gillitzer, 2012. "Urban Structure and Housing Prices: Some Evidence from Australian Cities," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 303-322, September.
    6. Jarkko Jääskelä & Callan Windsor, 2011. "Insights from the Household Expenditure Survey," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 1-12, December.
    7. Charles Himmelberg & Christopher Mayer & Todd Sinai, 2005. "Assessing High House Prices: Bubbles, Fundamentals and Misperceptions," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 67-92, Fall.
    8. repec:bla:ausecr:v:38:y:2005:i:3:p:265-281 is not listed on IDEAS
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    Cited by:

    1. Ross Kendall & Peter Tulip, 2018. "The Effect of Zoning on Housing Prices," RBA Research Discussion Papers rdp2018-03, Reserve Bank of Australia.
    2. Ryan Fox & Peter Tulip, 2014. "Is Housing Overvalued?," RBA Research Discussion Papers rdp2014-06, Reserve Bank of Australia.
    3. Christopher G Gibbs & Jonathan Hambur & Gabriela Nodari, 2018. "DSGE Reno: Adding a Housing Block to a Small Open Economy Model," RBA Research Discussion Papers rdp2018-04, Reserve Bank of Australia.
    4. Christopher G. Gibbs & Jonathan Hambur & Gabriela Nodari, 2021. "Housing and Commodity Investment Booms in a Small Open Economy," The Economic Record, The Economic Society of Australia, vol. 97(317), pages 212-242, June.
    5. Yanotti, Maria Belen, 2013. "A review of the Australian mortgage market," Working Papers 2014-01, University of Tasmania, Tasmanian School of Business and Economics, revised 01 Aug 2013.
    6. Dominic Crowley & Shuyun May Li, 2016. "An NPV Analysis of Buying versus Renting for Prospective Australian First Home Buyers," The Economic Record, The Economic Society of Australia, vol. 92(299), pages 606-630, December.

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