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Independent Living and Home Ownership: An Analysis of Australian Youth


  • Steven C. Bourassa
  • Donald R. Haurin
  • R. Jean Haurin
  • Patric H. Hendershott


This study extends recent work that developed and tested economic models of the joint decisions of household formation and homeownership. The cost of shelter is an important determinant of whether youth live independently (apart from parents and other nonrelated adults), and the cost of homeownership relative to renting is important to the tenure decision. Simulations suggest that the post-1985 decline and eventual removal of the Australian subsidy for first time homeowners has lowered the homeownership rate among young households by 23 percent, which is equivalent to slowing the time to first ownership by two years for such households.
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Suggested Citation

  • Steven C. Bourassa & Donald R. Haurin & R. Jean Haurin & Patric H. Hendershott, 1994. "Independent Living and Home Ownership: An Analysis of Australian Youth," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(3), pages 29-44.
  • Handle: RePEc:bla:ausecr:v:27:y:1994:i:3:p:29-44

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    References listed on IDEAS

    1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    2. Eisner, Robert, 1969. "Tax Policy and Investment Behavior: Comment," American Economic Review, American Economic Association, vol. 59(3), pages 379-388, June.
    3. Donald R. Haurin & Patric H. Hendershott & David C. Ling, 1987. "Homeownership Rates of Married Couples: An Econometric Investigation," NBER Working Papers 2305, National Bureau of Economic Research, Inc.
    4. W. A. V. Clark, 1985. "Human Migration," Book Chapters,in: Grant I. Thrall (ed.), Scientific Geography, pages 51 Regional Research Institute, West Virginia University.
    5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    6. Haurin, Donald R. & Kamara, Duewa A., 1992. "The homeownership decision of female-headed households," Journal of Housing Economics, Elsevier, vol. 2(4), pages 293-309, December.
    7. Patric H. Hendershott & Joel Slemrod, 1982. "Taxes and the User Cost of Capital for Owner-Occupied Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 10(4), pages 375-393.
    8. repec:brs:ecchap:12 is not listed on IDEAS
    9. Haurin Donald R. & Hendershott Patric H. & Kim Dongwook, 1994. "Housing Decisions of American Youth," Journal of Urban Economics, Elsevier, vol. 35(1), pages 28-45, January.
    10. Frances Goldscheider & Julie DaVanzo, 1985. "Living arrangements and the transition to adulthood," Demography, Springer;Population Association of America (PAA), vol. 22(4), pages 545-563, November.
    11. Winkler, Anne E., 1992. "The impact of housing costs on the living arrangements of single mothers," Journal of Urban Economics, Elsevier, vol. 32(3), pages 388-403, November.
    12. Haurin, Donald R & Hendershott, Patric H & Kim, Dongwook, 1993. "The Impact of Real Rents and Wages on Household Formation," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 284-293, May.
    13. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
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    Cited by:

    1. Tan, Teck Hong & Khong, Kok Wei, 2012. "The Link between Homeownership Motivation and Housing Satisfaction," MPRA Paper 46890, University Library of Munich, Germany.
    2. Deborah A. Cobb-Clark, 2008. "Leaving Home: What Economics Has to Say about the Living Arrangements of Young Australians," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 41(2), pages 160-176, June.
    3. Judith Yates, 2003. "'The more things change?' An overview of Australia's recent home ownership policies," International Journal of Housing Policy, Taylor & Francis Journals, vol. 3(1), pages 1-33.
    4. Daina McDonald, 2006. "150 Issues of The Australian Economic Review: The Changing Face of a Journal over Time," Melbourne Institute Working Paper Series wp2006n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Clara H. Mulder, 2013. "Family dynamics and housing," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(14), pages 355-378, September.
    6. Tan, Teck Hong, 2009. "Home owning motivation in Malaysia," MPRA Paper 34906, University Library of Munich, Germany.
    7. Anna BiaƂek, 2003. "Strategies of Subsidizing Private Housing Property on the Example of IBD (Partial Buying of Percentage) and MID (Limited Tax Deduction of Percentage)," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 9.
    8. Steven Garasky, 2000. "Understanding the Employment Experiences and Migration Patterns of Rural Youth and Young Adults," JCPR Working Papers 143, Northwestern University/University of Chicago Joint Center for Poverty Research.

    More about this item

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand


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