Housing affordability in Australia for first home buyers on moderate incomes

Kupke, Valerie; Rossini, Peter

doi:10.1108/02637471111154809

Cited by 19 publications

(13 citation statements)

References 8 publications

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“…It can be observed the FHOG scheme was positive and statistically significant at the 5 per cent level, indicating increases in the FHOG scheme value would increase the level of housing affordability among first-time buyers. This result supports the findings of Kupke & Rossini (2011) and the visual presentation in Figure 1 in which a strong government incentive to purchase substantially improved the level of housing affordability among first-time buyers. In other words, it has been demonstrated that the FHOG scheme is an effective housing scheme to increase housing affordability.…”

Section: The Fhog Scheme and Housing Affordabilitysupporting

confidence: 93%

“…Guest (2005) concluded that the FHOG scheme does not necessarily imply an increase in housing demand and prices. On the other hand, Kupke & Rossini (2011) argued that government subsidies assisted firsttime buyers to gain access to housing, although the initial gains from the subsidies disappeared into the subsequent larger mortgage loans. Overall, these studies have enriched an understanding about the impacts of the FHOG scheme on housing prices, although there has been relatively little attention placed on the critical relationship between the FHOG scheme and housing price volatility.…”

Section: The Fhog Scheme In Australia and Housing Affordability For Fmentioning

confidence: 98%

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The Relationship between Housing Market Intervention for First-Time Buyers and House Price Volatility

Lee

Reed

2014

Housing Studies

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Declining homeownership rates as observed in many western countries have direct and indirect implications for the broader economy; hence, governments have been seeking an effective solution to address this decline. One of the major challenges is the decline in overall homeownership rates with an increasing proportion of households deciding to rent rather than purchase. However, it is surprising that the impact on the housing market following the introduction of a first-time housing subsidy scheme has received relatively little attention. This study addresses this knowledge gap by examining the relationship between (1) housing market intervention based on first-time owner subsidies in a global city and (2) the level of house price volatility in the broader market. For example, the Australian government has implemented different policies designed to ease housing stress among first-time buyers; one high-profile policy was the First-time buyer Grant or First Home Owner Grant (FHOG) in which a cash payment or subsidy is given to new first-time buyers as a direct incentive. Based on a case study approach, an analysis is undertaken of the first-time buyer policy where an innovative approach using the E-GARCH model is employed to assess the effect of the scheme on the housing market. The findings indicated that the FHOG scheme offered a stabilisation effect on the housing market. In addition, there is evidence to support implementation of the FHOG scheme as an effective scheme to enhance housing affordability of first-time buyers. The findings offer a rare insight into the effectiveness of the FHOG scheme in enhancing housing affordability and also maintaining price stabilisation in the broader housing market.

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Section: The Fhog Scheme and Housing Affordabilitysupporting

confidence: 93%

Section: The Fhog Scheme In Australia and Housing Affordability For Fmentioning

confidence: 98%

The Relationship between Housing Market Intervention for First-Time Buyers and House Price Volatility

Lee

Reed

2014

Housing Studies

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“…Meanwhile, the dual-income households between the working spouses encouraged the housing affordability (Scalon&Whitehead, 2004). For instance, a research by Kupke & Rossini, (2011) found the homeownership is increasingly difficult in cities such as Adelaide, Melbourne and Brisbane for the single income household. This phenomenon not only happened in Australia cities, but single income household mainly in Germany's cities also encountered the complications of housing affordability to the extent of reducing the homeownership rate in the country (Bentzien et al, 2012).…”

Section: Socioeconomic Factorsmentioning

confidence: 99%

“…The household expenditure included several costs in life survivals such as foods, apparels, wellness, educations, investments in human capital (Kutty, 2005), utility payments (Bentzinger& Cook, 2012) and transportation costs (Kupke & Rossini, 2011) are the essences in daily household expenditures. Although each household needed the non-housing expenditures in life, the household expenditures and the consumed priorities differ accordingly.…”

Section: Socioeconomic Factorsmentioning

confidence: 99%

Homeownership Affordability of Low Income Group in Kuala Lumpur

Rameli

Salleh

Ismail

2017

ASSRJ

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The housing issue has taken over the global attention particularly homeownership affordability issue. Owning a house is significantly known as one of the basic necessities in human survival. Thus, the capability of the low income group to afford a house is practically the main highlight in this issue. Besides, the escalation of the low income group in the urban areas which occurred due to the migration to enhance a better life causes this issue to be left as a debatable one. Hence, it is important to identify the affordability levels and also the socioeconomic factors which affect the homeownerships affordability of the low income groups in Kuala Lumpur city. The socioeconomic factors were focused on household income, household expenditures, type of employments, the education levels, household sizes, the monthly payment for housing and the household savings. Furthermore, an investigation based on the stratified sampling techniques was carried out on a total of 400 of head households according to their specified residential zones. The indication of the housing affordability level was measured based on the residual income theory whereas the binary logistic regression was implemented in identifying their affordability factors. The results exhibit the low income groups are afforded to own public housing unit in Kuala Lumpur. Household income, household expenditures and monthly payment for housing affect homeownership affordability significantly. Conversely, education level, types of employment, household size and household savings not affects homeownership affordability significantly.

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“…Home ownership transition is not only connected to marriage and childbearing, but also to socioeconomic circumstances such as employment status and income, but also parental resources and higher education. In addition, not only life course, but contextual factors play a large role in entering home ownership, including pricing and political framework of the housing market at the time (Kupke & Rossini, 2011;Mulder & Wagner, 1998). In Australia, the Australian Bureau of Statistics has reported a decrease in home ownership rates in people aged 25-34 (Australian Bureau of Statistics, 2004;Flood & Baker, 2010).…”

Section: Home Ownership Across the Life Coursementioning

confidence: 99%

Interrelationships among home ownership and early family events in Australia

Spallek¹

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The generations of Australians who entered adulthood in the second half of the twentieth century experienced a standard housing tenure trajectory that was more clearly defined than it is today. Young adults would typically leave the family home to marry and await the birth of their first child while residing in a rental home before entering into home ownership. The housing tenure trajectories of later generations who entered adulthood closer to the turn of the twenty-first century have become destandardised, but there is little empirical analysis of these trajectories or their consequences.As time progressed towards the turn of the twenty-first century, the standard life course trajectory was challenged by the concept of 'choice', which led to the loosening of traditions and a more diverse range of lifestyles. Many of these changes were associated with changing life course patterns, for example, individuals were spending more time in further education, delaying entry into the labour force, entering unions that may or may not result in marriage and choosing to postpone the birth of a first child. Early literature assumed that there was an appropriate order and timing for transitions of key life-events and that negative outcomes would be experienced later in life if an appropriate sequence of housing tenure and family events was not adhered to. Specifically, the age pension at retirement in Australia assumes low housing costs which have long term implications for families that do not attain home ownership, increasing their vulnerability to poverty in the later stages of life.This thesis draws on longitudinal data from the first ten waves (2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)

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Housing affordability in Australia for first home buyers on moderate incomes

Cited by 19 publications

References 8 publications

The Relationship between Housing Market Intervention for First-Time Buyers and House Price Volatility

The Relationship between Housing Market Intervention for First-Time Buyers and House Price Volatility

Homeownership Affordability of Low Income Group in Kuala Lumpur

Interrelationships among home ownership and early family events in Australia

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