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A Life Cycle Analysis of Housing Affordability Options for First Home Owner‐Occupiers in Australia
Author(s) -
GUEST ROSS S.
Publication year - 2005
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2005.00258.x
Subject(s) - equity (law) , consumption (sociology) , home equity , business , housing tenure , economics , plan (archaeology) , public economics , finance , labour economics , political science , geography , social science , archaeology , sociology , law
This paper presents a life cycle analysis of several policies for improving housing affordability for first home owner‐occupiers in Australia: the First Home Owner Grant, housing equity partnerships and deposit loans. The analysis is by simulation of a housing tenure choice model in which a representative adult household makes a lifetime plan concerning the timing of the first home purchase, and the amount of housing and non‐housing consumption in each period. An insight from the life cycle framework is that policies to improve housing affordability can have a life cycle timing effect on housing demand and house prices.