IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v16y1984i8p1099-1113.html
   My bibliography  Save this article

Determinants of Housing Expenditure in Australia

Author

Listed:
  • G J Butler
  • J Flood
  • S N Tucker

Abstract

Research on the determinants of housing expenditure in Australia is limited by inadequate treatment of the distinction between three types of households: home renters, homeowners in the process of purchase, and homeowners who own outright. In this paper the authors use published and unpublished cross-sectional data from 1966–1968 and 1975–1976 to demonstrate the importance of the various determinants of housing across the three household types and, for the first time, to compare the characteristics at two points in time almost a decade apart. It was found that the influence of sociodemographic variables such as age, employment status, and household size was statistically significant, and that their influence varied considerably across the three household types. Detailed analysis has shown that income elasticity estimates of demand for housing were all found to be invariant over time, to be substantially less than 1.0 and to differ markedly between tenure type, with home renters having the lowest values (0.46–0.49), outright homeowners the highest (0.69), and mortgaged homeowners in between (0.53–0.59).

Suggested Citation

  • G J Butler & J Flood & S N Tucker, 1984. "Determinants of Housing Expenditure in Australia," Environment and Planning A, , vol. 16(8), pages 1099-1113, August.
    • Handle: RePEc:sae:envira:v:16:y:1984:i:8:p:1099-1113
    DOI: 10.1068/a161099
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a161099
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a161099?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    2. Goodman, Allen C. & Kawai, Masahiro, 1982. "Permanent income, hedonic prices, and demand for housing: New evidence," Journal of Urban Economics, Elsevier, vol. 12(2), pages 214-237, September.
    3. Polinsky, A Mitchell & Ellwood, David T, 1979. "An Empirical Reconciliation of Micro and Grouped Estimates of the Demand for Housing," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 199-205, May.
    4. Rosen, Harvey S., 1979. "Owner occupied housing and the federal income tax: Estimates and simulations," Journal of Urban Economics, Elsevier, vol. 6(2), pages 247-266, April.
    5. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, June.
    6. Carliner, Geoffrey, 1973. "Income Elasticity of Housing Demand," The Review of Economics and Statistics, MIT Press, vol. 55(4), pages 528-532, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:pri:cepsud:141rosen is not listed on IDEAS
    2. Kristopher Gerardi & Harvey S. Rosen & Paul S. Willen, 2006. "Do households benefit from financial deregulation and innovation?: the case of the mortgage market," Public Policy Discussion Paper 06-6, Federal Reserve Bank of Boston.
    3. David Albouy & Mike Zabek, 2016. "Housing Inequality," NBER Working Papers 21916, National Bureau of Economic Research, Inc.
    4. Tilak Abeysinghe & Jiaying Gu, 2011. "Lifetime Income and Housing Affordability in Singapore," Urban Studies, Urban Studies Journal Limited, vol. 48(9), pages 1875-1891, July.
    5. Leonel Cerno & Teodosio Pérez Amaral, 2005. "Demand for Internet Access and Use in Spain," Documentos de Trabajo del ICAE 0506, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    6. Mohammad Maatoug Gandil, 1996. "The Impact of Dwelling Quality and Neighbourhood Quality on the Estimation of the Income Elasticity of Demand for Rental Housing in Jeddah, Saudi Arabia," Urban Studies, Urban Studies Journal Limited, vol. 33(2), pages 301-315, March.
    7. Piyush Tiwari & Jyoti Parikh, 1998. "Affordability, Housing Demand and Housing Policy in Urban India," Urban Studies, Urban Studies Journal Limited, vol. 35(11), pages 2111-2129, November.
    8. Kristopher S. Gerardi & Harvey S. Rosen & Paul S. Willen, 2006. "Do households benefit from financial deregulation and innovation?: the case of the mortgage market," Public Policy Discussion Paper 06-6, Federal Reserve Bank of Boston.
    9. Daniel Shefer, 1990. "The Demand for Housing, and Permanent Income, in Indonesia," Urban Studies, Urban Studies Journal Limited, vol. 27(2), pages 259-272, April.
    10. G. Donald Jud & James Frew, 1986. "Real Estate Brokers, Housing Prices, and the Demand for Housing," Urban Studies, Urban Studies Journal Limited, vol. 23(1), pages 21-31, February.
    11. Seth B. Sacher, 1993. "Housing Demand and Property Tax Incidence in a Life-Cycle Framework," Public Finance Review, , vol. 21(3), pages 235-259, July.
    12. J.R. Slater, 1986. "Income, Location and Housing in Greater London," Urban Studies, Urban Studies Journal Limited, vol. 23(4), pages 333-341, August.
    13. Chul‐Woo Kwon & Peter F. Orazem & Daniel M. Otto, 2006. "Off‐farm labor supply responses to permanent and transitory farm income," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 59-67, January.
    14. Bunting, David, 2009. "The saving decline: Macro-facts, micro-behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 282-295, May.
    15. Jonathan Gruber & Aaron Yelowitz, 1999. "Public Health Insurance and Private Savings," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1249-1274, December.
    16. Lang, Harald, 1987. "Herman Wold on Optimal Properties of Exponentially Weighted Forecasts," Working Paper Series 179, Research Institute of Industrial Economics.
    17. Brautzsch, Hans-Ulrich & Günther, Jutta & Loose, Brigitte & Ludwig, Udo & Nulsch, Nicole, 2015. "Can R&D subsidies counteract the economic crisis? – Macroeconomic effects in Germany," Research Policy, Elsevier, vol. 44(3), pages 623-633.
    18. Sadullah Çelik & Yasemin Özerkek, 2008. "Panel cointegration analysis of consumer confidence and personal consumption in the European Union," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 10(2), pages 161-168, February.
    19. repec:spo:wpecon:info:hdl:2441/f0uohitsgqh8dhk9814kl7606 is not listed on IDEAS
    20. Ricardo Barradas & Ines Tomas, 2023. "Household indebtedness in the European Union countries: Going beyond the mainstream interpretation," PSL Quarterly Review, Economia civile, vol. 76(304), pages 21-49.
    21. Alok Bhargava, 2006. "Modelling the Health of Filipino Children," World Scientific Book Chapters, in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 11, pages 153-168, World Scientific Publishing Co. Pte. Ltd..
    22. Iheonu O Chimere & Tochukwu Nwachukwu, 2020. "Macroeconomic determinants of household consumption in selected West African countries," Economics Bulletin, AccessEcon, vol. 40(2), pages 1596-1606.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:16:y:1984:i:8:p:1099-1113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.