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Regional House Price Dynamics in Australia: Insights into Lifestyle and Mining Dynamics through PCA

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  • Willem Sijp

Abstract

This report applies Principal Component Analysis (PCA) to regional house price indexes to uncover dominant trends in Australia's housing market. Regions are assigned PCA-derived scores that reveal which underlying market forces are most influential in each area, enabling broad classification of local housing markets. The approach highlights where price movements tend to align across regions, even those geographically distant. The three most dominant trends are described in detail and, together with the regional scores, provide objective tools for policymakers, researchers, and real estate professionals.

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  • Willem Sijp, 2025. "Regional House Price Dynamics in Australia: Insights into Lifestyle and Mining Dynamics through PCA," Papers 2503.18332, arXiv.org, revised Apr 2025.
    • Handle: RePEc:arx:papers:2503.18332
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    References listed on IDEAS

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    1. Sofie R. Waltl, 2019. "Variation Across Price Segments and Locations: A Comprehensive Quantile Regression Analysis of the Sydney Housing Market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 47(3), pages 723-756, September.
    2. Morteza Moallemi & Daniel Melser, 2020. "The impact of immigration on housing prices in Australia," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 773-786, June.
    3. Justine Wang & Alla Koblyakova & Piyush Tiwari & John S. Croucher, 2018. "Is the Australian housing market in a bubble?," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 13(1), pages 77-95, April.
    4. repec:osf:socarx:kn6tm_v1 is not listed on IDEAS
    5. repec:eme:ijhma0:ijhma-03-2017-0026 is not listed on IDEAS
    6. Willem P. Sijp & Anastasios Panagiotelis & Marc K. Francke, 2025. "Data‐sparse price indexes by spatio‐temporal regularization and PCA: An application to the Australian housing market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 53(2), pages 266-296, March.
    7. Crommelin, Laura & Denham, Todd & Troy, Laurence & Harrison, Jason & Gilbert, Hulya & Dühr, Stefanie & Pinnegar, Simon, 2022. "Understanding the lived experience and benefits of regional cities," SocArXiv kn6tm, Center for Open Science.
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