IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/t85rj.html
   My bibliography  Save this paper

The new normal: changed patterns of dwelling demand and supply

Author

Listed:
  • Rowley, Steven
  • Brierty, Ryan
  • Perugia, Francesca
  • Rahman, Habib
  • Singh, Ranjodh
  • Swapan, Mohammad
  • Taylor, Elizabeth

Abstract

This research assessed the impact of the COVID-19 pandemic on patterns of housing supply and demand and how the Australian housing market has changed over recent time (including between the 2016 and 2021 Censuses). The pandemic showed just how quickly demand for housing can change and how prices and rents can rise rapidly as a result. The COVID-19 period, defined as mid-2020 to mid-2022 for the purposes of this study, saw robust price growth within Australian capital cities and even stronger growth in regional areas. In the rental market, vacancy rates fell across the country and rents rose sharply. COVID changed what households want from their dwelling: predominantly it was about having more space, both inside and out, and that was linked with the ability to work more from home. Overall, consumers continue to prefer houses over units in metropolitan areas. COVID-19 also created significant and distinct changes to population dynamics with low or negative growth within inner urban areas; growth in regional towns and cities, particularly those associated with sea and tree changes; and strong growth in traditional first home buyer areas, primarily on the urban periphery. Property sales in high-growth regions came significantly from investors who sold stock from the rental market (generally to first home buyers and second home buyers). This, in turn, reduced rental availability and vacancy rates and displaced private renters. Where investors did buy into the regional areas studied, these were at higher prices which were in turn reflected in higher rents. The research reiterates that increases in housing supply need to be carefully managed by governments, including the supply of social and affordable housing in regional areas.

Suggested Citation

  • Rowley, Steven & Brierty, Ryan & Perugia, Francesca & Rahman, Habib & Singh, Ranjodh & Swapan, Mohammad & Taylor, Elizabeth, 2023. "The new normal: changed patterns of dwelling demand and supply," SocArXiv t85rj, Center for Open Science.
    • Handle: RePEc:osf:socarx:t85rj
    DOI: 10.31219/osf.io/t85rj
    as

    Download full text from publisher

    File URL: https://osf.io/download/6470077aa8dbe90039cb5237/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/t85rj?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. Leishman, Chris & Aminpour, Fatemeh & Baker, Emma & Beer, Andrew & Crowe, Adam & Goodall, Zoë & Horton, Ella & Jacobs, Keith & Lester, Laurence & Maclennan, Duncan, 2022. "Australia’s COVID-19 pandemic housing policy responses," SocArXiv yef47, Center for Open Science.
    2. Huang, Donna & Rowley, Steven & Crowe, Adam & Gilbert, Catherine & Kruger, Marko & Leishman, Chris & Zuo, Jian, 2020. "Responding to the pandemic, can building homes rebuild Australia?," SocArXiv 9rpaq, Center for Open Science.
    3. Hu, Maggie R. & Lee, Adrian D. & Zou, Dihan, 2021. "COVID-19 and Housing Prices: Australian Evidence with Daily Hedonic Returns," Finance Research Letters, Elsevier, vol. 43(C).
    4. Cameron Parsell & Hal Pawson, 2022. "COVID-19 and the meaning of home: how the pandemic triggered new thinking on housing," Housing Studies, Taylor & Francis Journals, vol. 38(1), pages 1-7, December.
    5. Adam Crowe & Alan S Duncan & Amity James & Steven Rowley, 2021. "Housing Affordability in WA: A tale of two tenures," Bankwest Curtin Economics Centre Report series FWA15, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
    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. Leishman, Chris & Aminpour, Fatemeh & Baker, Emma & Beer, Andrew & Crowe, Adam & Goodall, Zoë & Horton, Ella & Jacobs, Keith & Lester, Laurence & Maclennan, Duncan, 2022. "Australia’s COVID-19 pandemic housing policy responses," SocArXiv yef47, Center for Open Science.
    2. Yanotti, Maria B. & Kangogo, Moses & Wright, Danika & Sarkar, Somwrita & Lyu, Fei, 2024. "House price dynamics and internal migration across Australia," SocArXiv r5eg2, Center for Open Science.
    3. Sławomir Kalinowski & Aleksandra Łuczak & Adam Koziolek, 2022. "The Social Dimension of Security: The Dichotomy of Respondents’ Perceptions during the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(3), pages 1-20, January.
    4. Raul-Tomas Mora-Garcia & Maria-Francisca Cespedes-Lopez & V. Raul Perez-Sanchez, 2022. "Housing Price Prediction Using Machine Learning Algorithms in COVID-19 Times," Land, MDPI, vol. 11(11), pages 1-32, November.
    5. Yanke Dai & Yangfei Xu, 2022. "Cheating under Regulation: Evidence from “Yin-and-Yang” Contracts on Beijing’s Housing Market," Sustainability, MDPI, vol. 14(20), pages 1-29, October.
    6. Rowley, Steven & Leishman, Chris & Olatunji, Oluwole & Zuo, Jian & Crowe, Adam, 2022. "Understanding how policy settings affect developer decisions," SocArXiv 8e659, Center for Open Science.
    7. Hakan Yilmazkuday, 2023. "COVID-19 and housing prices: evidence from U.S. county-level data," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(2), pages 241-263, August.
    8. Doruk, Ömer Tuğsal & Konuk, Serhat & Atici, Rümeysa, 2021. "Short-term working allowance and firm risk in the post-COVID-19 period: Novel matching evidence from an emerging market," Finance Research Letters, Elsevier, vol. 43(C).
    9. Iyer, Subramanian Rama & Simkins, Betty J., 2022. "COVID-19 and the Economy: Summary of research and future directions," Finance Research Letters, Elsevier, vol. 47(PB).
    10. Xinba Li & Chuanrong Zhang, 2021. "Did the COVID-19 Pandemic Crisis Affect Housing Prices Evenly in the U.S.?," Sustainability, MDPI, vol. 13(21), pages 1-28, November.
    11. Xinba Li & Chihwa Kao, 2022. "Spatial Analysis and Modeling of the Housing Value Changes in the U.S. during the COVID-19 Pandemic," JRFM, MDPI, vol. 15(3), pages 1-25, March.
    12. Gill, Balbinder Singh, 2024. "COVID-19 mortality risk premium and the interest rate on mortgage loans," International Review of Financial Analysis, Elsevier, vol. 93(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:osf:socarx:t85rj. 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: OSF (email available below). General contact details of provider: https://arabixiv.org .

    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.