IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v42y2005i1p91-111.html

Institutional Investment in Rental Housing in Australia: A Policy Framework and Two Models

Author

Listed:
  • Mike Berry

    (Australian Housing and Urban Research Institute at Royal Melbourne Institute of Technology, School of Social Science and Planning, RMIT, GPO Box 2476V, Melbourne, Victoria, Australia 3001, mike.berry@rmit.edu.au)

  • Jon Hall

    (Australian Housing and Urban Research Institute at Royal Melbourne Institute of Technology, School of Social Science and Planning, RMIT, GPO Box 2476V, Melbourne, Victoria, Australia 3001, jhall@mail.usyd.edu.au)

Abstract

Housing affordability among low-to moderate-income private tenants has been declining over the past 10 years in Australia. This trend has intensified in spite of almost a decade of strong economic growth and low inflation in the Australian economy. An important factor here has been the continuing decline in the stock of rental housing at the low-rent end of the market, especially in the large cities like Sydney and Melbourne. This, in turn, has been associated with the peculiar pattern of private investment in Australian housing markets. Large professional and institutional investors have avoided the private rental sector, leaving a myriad of small individual investor-landlords as primary suppliers. Government housing, taxation and other policies have reinforced this pattern of development. This paper provides a conceptual framework for analysing these outcomes and develops an approach that identifies the key elements of public policy necessary to reduce barriers to widespread investment in the provision of affordable, low-cost rental housing. Two specific investment models are then outlined and analysed. The first model is based on renewed public borrowing from private investors. The second model introduces a stock exchange listed public company financed by a mix of government and private equity and corporate borrowings. The total net subsidy cost to government is identified in each model and sensitivity analysis outcomes noted.

Suggested Citation

  • Mike Berry & Jon Hall, 2005. "Institutional Investment in Rental Housing in Australia: A Policy Framework and Two Models," Urban Studies, Urban Studies Journal Limited, vol. 42(1), pages 91-111, January.
    • Handle: RePEc:sae:urbstu:v:42:y:2005:i:1:p:91-111
    DOI: 10.1080/0042098042000309711
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/0042098042000309711
    Download Restriction: no
    File URL: https://libkey.io/10.1080/0042098042000309711?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Murray, Michael P, 1999. "Subsidized and Unsubsidized Housing Stocks 1935 to 1987: Crowding Out and Cointegration," The Journal of Real Estate Finance and Economics, Springer, vol. 18(1), pages 107-124, January.
    2. Productivity Commission, 2004. "First Home Ownership," Others 0410007, University Library of Munich, Germany.
    3. Peacock,Alan, 1997. "Public Choice Analysis in Historical Perspective," Cambridge Books, Cambridge University Press, number 9780521599764, Enero-Abr.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Jie & Nong, Huifu, 2016. "The heterogeneity of market supply effects of public housing provision: Empirical evidence from China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 115-127.
    2. Pankaj K. P. Shreyaskar & Mrinalini Pandey & Pramod Pathak, 2026. "Factors Affecting Lobbying: Illustrations From India," Vision, , vol. 30(1), pages 110-120, February.
    3. Gabriel, Stuart A. & Rosenthal, Stuart S., 2010. "Do the GSEs expand the supply of mortgage credit? New evidence of crowd out in the secondary mortgage market," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 975-986, December.
    4. Eoin Corrigan, 2019. "The Scale and Impact of the Local Authority Rent Subsidy," The Economic and Social Review, Economic and Social Studies, vol. 50(1), pages 159-211.
    5. Laferrere, Anne & Le Blanc, David, 2004. "How do housing allowances affect rents? An empirical analysis of the French case," Journal of Housing Economics, Elsevier, vol. 13(1), pages 36-67, March.
    6. He, Yinghua & O'Flaherty, Brendan & Rosenheck, Robert A., 2010. "Is shared housing a way to reduce homelessness? The effect of household arrangements on formerly homeless people," Journal of Housing Economics, Elsevier, vol. 19(1), pages 1-12, March.
    7. Susin, Scott, 2002. "Rent vouchers and the price of low-income housing," Journal of Public Economics, Elsevier, vol. 83(1), pages 109-152, January.
    8. Jesse M Cunha & Giacomo De Giorgi & Seema Jayachandran, 2019. "The Price Effects of Cash Versus In-Kind Transfers," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 240-281.
    9. Andrew Beer & Rebecca Bentley & Emma Baker & Kate Mason & Shelley Mallett & Anne Kavanagh & Tony LaMontagne, 2016. "Neoliberalism, economic restructuring and policy change: Precarious housing and precarious employment in Australia," Urban Studies, Urban Studies Journal Limited, vol. 53(8), pages 1542-1558, June.
    10. Xu, Hangtian & Zhou, Yiming, 2019. "Public housing provision and housing vacancies in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 53(C), pages 1-1.
    11. Lee, Chul-In, 2007. "Does provision of public rental housing crowd out private housing investment? A panel VAR approach," Journal of Housing Economics, Elsevier, vol. 16(1), pages 1-20, March.
    12. Nordvik, Viggo, 2006. "Selective housing policy in local housing markets and the supply of housing," Journal of Housing Economics, Elsevier, vol. 15(4), pages 279-292, December.
    13. Murray, Cameron & Phibbs, Peter, 2022. "Evidence-lite zone: The weak evidence behind the economic case against planning regulation," OSF Preprints 69m23, Center for Open Science.
    14. Sock-Yong Phang, 2009. "Affordable homeownership policy : implications for housing markets," Microeconomics Working Papers 23052, East Asian Bureau of Economic Research.
    15. Alan Peacock, 2010. "Public economics and history of economic thought: a personal memoir," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 17(4), pages 543-557.
    16. Grimes, Arthur & Kerr, Suzi & Aitken, Andrew, 2004. "Bi-Directional Impacts of Economic, Social and Environmental Changes and the New Zealand Housing Market," Motu Working Papers 292986, Motu Economic and Public Policy Research.
    17. Sinai, Todd & Waldfogel, Joel, 2005. "Do low-income housing subsidies increase the occupied housing stock?," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2137-2164, December.
    18. Freedman, Matthew & Owens, Emily G., 2011. "Low-income housing development and crime," Journal of Urban Economics, Elsevier, vol. 70(2), pages 115-131.
    19. Eriksen, Michael D. & Rosenthal, Stuart S., 2010. "Crowd out effects of place-based subsidized rental housing: New evidence from the LIHTC program," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 953-966, December.
    20. Wigren, Rune & Wilhelmsson, Mats, 2007. "Construction investments and economic growth in Western Europe," Journal of Policy Modeling, Elsevier, vol. 29(3), pages 439-451.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:42:y:2005:i:1:p:91-111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.