IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2511.01133.html
   My bibliography  Save this paper

Liquidity Shocks, Homeownership, and Income Inequality: Impact of Early Pension Withdrawals and Reduced Deposit

Author

Listed:
  • Hamza Hanbali
  • Gaurav Khemka
  • Himasha Warnakulasooriya

Abstract

The paper analyzes two government policies affecting housing demand: early withdrawal from pension savings (EW), and reduction of loan deposit (RD). A model incorporating demand feedback on housing prices using Australian data shows both policies raise prices in the short run. RD delays or prevents access for low-income households, particularly in supply-constrained markets. EW improves accessibility across groups and is most efficient when full withdrawal is permitted, but can reduce retirement security if pension grows faster than property prices. The results also indicate that unequal outcomes stem not from price surges themselves but from pre-existing market disparities.

Suggested Citation

  • Hamza Hanbali & Gaurav Khemka & Himasha Warnakulasooriya, 2025. "Liquidity Shocks, Homeownership, and Income Inequality: Impact of Early Pension Withdrawals and Reduced Deposit," Papers 2511.01133, arXiv.org.
    • Handle: RePEc:arx:papers:2511.01133
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2511.01133
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:arx:papers:2511.01133. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.