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Independent Living and Home Ownership: An Analysis of Australian Youth
Author(s) -
Bourassa Steven C.,
Haurin Donald R.,
Haurin R. Jean,
Hendershott Patric H.
Publication year - 1994
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.1994.tb00846.x
Subject(s) - renting , subsidy , demographic economics , business , housing tenure , labour economics , economics , political science , market economy , law
This study extends economic models of the joint decisions of living arrangement and home ownership. The cost of shelter is an important factor in determining whether youth live independently (apart from parents and other non‐related adults), and the cost of home ownership relative to renting is important to the tenure decision (choice of owning or renting). Simulations suggest that the post‐1985 decline and eventual removal of the Australian subsidy for first‐time home owners has lowered the home ownership rate among young households by 23 per cent, the equivalent of slowing the time to first ownership by two years.