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New Zealand's 'love affair' with houses and cars


  • Mohammed Khaled
  • Ralph Lattimore


Rapidly rising house prices over the last few years has drawn the attention of researchers to the drivers lying behind both supply and demand side influences in the housing market. This study complements much of that work by attempting to uncover the price and income parameters for rental and owner-occupied housing in New Zealand in relation to all other goods and services purchased by households. The research quantifies a point long understood informally about demand behaviour in this country, that the demand for housing (and cars) is particularly income elastic. This has important implications for policy makers who attempt to constrain speculative housing demand. Another notable feature of the period has been an apparent trend away from owner occupied housing towards rental accommodation. The research is carried out using Household Economic Survey data through 2004.

Suggested Citation

  • Mohammed Khaled & Ralph Lattimore, 2008. "New Zealand's 'love affair' with houses and cars," New Zealand Economic Papers, Taylor & Francis Journals, vol. 42(1), pages 127-148.
  • Handle: RePEc:taf:nzecpp:v:42:y:2008:i:1:p:127-148
    DOI: 10.1080/00779950809544416

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    Cited by:

    1. Corey Allan & Suzi Kerr & Campbell Will, 2015. "Are we turning a brighter shade of green? The relationship between household characteristics and greenhouse gas emissions from consumption in New Zealand," Working Papers 15_06, Motu Economic and Public Policy Research.


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