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The Optimum Timing and Maximum Impact of Full Rehabilitation of New Zealand Housing Stock

Author

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  • I M Johnstone

    (Department of Property, University of Auckland, 26 Symonds Street, Auckland, New Zealand)

Abstract

The author develops a simulation model to estimate the optimum timing and maximum impact of full rehabilitation of New Zealand housing stock. The model is based on the theories of classical population dynamics. Data used in the model include empirical estimates of the mortality of New Zealand housing stock, assumed schedules of depreciation of dwelling services, and assumed schedules of annual maintenance costs. The dwelling service years provided by dwellings serve as a proxy for benefits of rents or imputed rents (excluding rent for land). The cost to construct one dwelling and fractions thereof serve as a proxy for costs of maintenance, rehabilitation, replacement, and new construction. Optimum timing of rehabilitation can increase the quantity of benefits provided by the housing stock per unit total cost but a reduction in the growth rate of new dwellings has a greater impact in achieving the same objective. A stationary and stable housing stock can provide 45% more dwelling services per unit total cost than a housing stock which doubles in size every 35 years.

Suggested Citation

  • I M Johnstone, 1998. "The Optimum Timing and Maximum Impact of Full Rehabilitation of New Zealand Housing Stock," Environment and Planning A, , vol. 30(7), pages 1295-1311, July.
    • Handle: RePEc:sae:envira:v:30:y:1998:i:7:p:1295-1311
    DOI: 10.1068/a301295
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    References listed on IDEAS

    as
    1. Stephen Malpezzi & Larry Ozanne & Thomas G. Thibodeau, 1987. "Microeconomic Estimates of Housing Depreciation," Land Economics, University of Wisconsin Press, vol. 63(4), pages 372-385.
    2. Michael E. Gleeson, 1992. "Renovation of Public Housing: Suggestions from a Simple Model," Management Science, INFORMS, vol. 38(5), pages 655-666, May.
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    Cited by:

    1. I. M. Johnstone, 2001. "Periodic refurbishment and reductions in national costs to sustain dwelling services," Construction Management and Economics, Taylor & Francis Journals, vol. 19(1), pages 97-108, January.

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