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Long-run Trends in Housing Price Growth

Author

Listed:
  • Marion Kohler

    (Reserve Bank of Australia)

  • Michelle Van Der Merwe

    (Reserve Bank of Australia)

Abstract

This article examines the factors driving long-run trends in Australian housing price growth over the past three decades. During the 1980s, housing prices grew broadly in line with general price inflation in the economy. The period from the 1990s until the mid 2000s saw relatively strong housing price growth associated with a significant increase in the debt-to-income ratio of Australian households. Since the mid 2000s, strong population growth has played an increasing role in explaining housing price growth.

Suggested Citation

  • Marion Kohler & Michelle Van Der Merwe, 2015. "Long-run Trends in Housing Price Growth," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 21-30, September.
    • Handle: RePEc:rba:rbabul:sep2015-03
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2015/sep/pdf/bu-0915-3.pdf
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    References listed on IDEAS

    as
    1. Ellis Connolly & Gianni La Cava & Matthew Read, 2015. "Housing Prices and Entrepreneurship: Evidence for the Housing Collateral Channel in Australia," RBA Annual Conference Volume (Discontinued), in: Angus Moore & John Simon (ed.),Small Business Conditions and Finance, Reserve Bank of Australia.
    2. Nikola Dvornak & Marion Kohler, 2007. "Housing Wealth, Stock Market Wealth and Consumption: A Panel Analysis for Australia," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 117-130, June.
    3. Bayoumi, Tamim, 1993. "Financial Deregulation and Household Saving," Economic Journal, Royal Economic Society, vol. 103(421), pages 1432-1443, November.
    4. Luci Ellis & Dan Andrews, 2001. "City Sizes, Housing Costs, and Wealth," RBA Research Discussion Papers rdp2001-08, Reserve Bank of Australia.
    5. Case, Karl E & Shiller, Robert J, 1989. "The Efficiency of the Market for Single-Family Homes," American Economic Review, American Economic Association, vol. 79(1), pages 125-137, March.
    6. Luci Ellis, 2006. "Housing and Housing Finance: The View from Australia and Beyond," RBA Research Discussion Papers rdp2006-12, Reserve Bank of Australia.
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    Cited by:

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    2. Vicente Esteve & María A. Prats, 2021. "Testing for rational bubbles in Australian housing market from a long-term perspective," Working Papers 2113, Department of Applied Economics II, Universidad de Valencia.
    3. Lisa Adkins & Melinda Cooper & Martijn Konings, 2021. "Class in the 21st century: Asset inflation and the new logic of inequality," Environment and Planning A, , vol. 53(3), pages 548-572, May.
    4. Moradi-Motlagh, Amir & Jubb, Christine, 2020. "Examining irresponsible lending using non-radial inefficiency measures: Evidence from Australian banks," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 96-108.
    5. Esteve Vicente & Prats Maria A., 2021. "Structural Breaks and Explosive Behavior in the Long-Run: The Case of Australian Real House Prices, 1870–2020," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 15(1), pages 72-84, January.
    6. Lowe, Philip, 2017. "Household debt, housing prices and resilience," Economic Analysis and Policy, Elsevier, vol. 55(C), pages 124-131.
    7. Trent Saunders & Peter Tulip, 2019. "A Model of the Australian Housing Market," RBA Research Discussion Papers rdp2019-01, Reserve Bank of Australia.

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