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Examining building age, rental housing and price filtering for affordability in Melbourne, Australia

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  • Matthew Palm

    (University of Toronto, Canada)

  • Katrina Eve Raynor

    (Queensland University of Technology, Australia)

  • Georgia Warren-Myers

    (University of Melbourne, Australia)

Abstract

Governments worldwide have responded to housing affordability challenges with supply-side solutions. Proponents of these approaches often draw on the notion of ‘filtering effects’ to argue that new supply naturally trickles down to lower-income households over time, improving affordability. This study examines the characteristics of Naturally Occurring Affordable Housing in Melbourne, Australia, analysing how dwelling age impacts rental cost. We specify a non-linear relationship between building age and rents through hedonic rent modelling, reflecting a premium for historic properties in inner Melbourne. We also conduct a cluster analysis of rental listings and measure affordability by cluster. Our results problematise the notion of filtering, finding that most contemporary affordable housing was initially built in the 1960s and 1970s as social housing or targeted at low-income households. We argue that filtering in this instance is not natural but is instead a reflection of historic government expenditure and past construction choices, or ‘filter up’.

Suggested Citation

  • Matthew Palm & Katrina Eve Raynor & Georgia Warren-Myers, 2021. "Examining building age, rental housing and price filtering for affordability in Melbourne, Australia," Urban Studies, Urban Studies Journal Limited, vol. 58(4), pages 809-825, March.
    • Handle: RePEc:sae:urbstu:v:58:y:2021:i:4:p:809-825
    DOI: 10.1177/0042098020927839
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    References listed on IDEAS

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