IDEAS home Printed from https://ideas.repec.org/p/nzt/nztwps/13-14.html
   My bibliography  Save this paper

Housing Affordability in New Zealand: Evidence from Household Surveys

Author

Listed:

Abstract

Housing affordability has been a topic of much interest in New Zealand over recent years with the median house price increasing by over 50% between 2004 and 2008. The aim of this paper is to inform debate by drawing out evidence from two surveys: the Household Economic Survey (HES); and the Survey of Family, Income and Employment (SoFIE). In particular, the paper examines how patterns of house prices, expenditures, and home ownership have changed over time and across groups. A model which may be suggestive of whether or not an individual or couple is likely to find home-ownership affordable is also developed. This model incorporates information relating to four important influences of affordability: income; net wealth; house prices; and the structure of mortgage contracts (including the interest rate and mortgage term).

Suggested Citation

  • David Law & Lisa Meehan, 2013. "Housing Affordability in New Zealand: Evidence from Household Surveys," Treasury Working Paper Series 13/14, New Zealand Treasury.
    • Handle: RePEc:nzt:nztwps:13/14
    as

    Download full text from publisher

    File URL: https://treasury.govt.nz/sites/default/files/2013-06/twp13-14.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:taf:regstd:v:46:y:2012:i:2:p:93-118 is not listed on IDEAS
    2. Phil Briggs, 2006. "Family trusts: ownership, size and their impact on measures of wealth and home ownership," Reserve Bank of New Zealand Discussion Paper Series DP2006/06, Reserve Bank of New Zealand.
    3. Stanley Fischer & Franco Modigliani, 1978. "Towards an understanding of the real effects and costs of inflation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(4), pages 810-833, December.
    4. Trinh Le & John Gibson & Steven Stillman, 2012. "Wealth and saving in New Zealand: evidence from the longitudinal survey of family, income and employment," New Zealand Economic Papers, Taylor & Francis Journals, vol. 46(2), pages 93-118, November.
    5. Grant Scobie & Trinh Le & John Gibson, 2007. "Housing in the Household Portfolio and Implications for Retirement Saving: Some Initial Finding from SOFIE," Treasury Working Paper Series 07/04, New Zealand Treasury.
    6. DiPasquale, Denise & Glaeser, Edward L., 1999. "Incentives and Social Capital: Are Homeowners Better Citizens?," Journal of Urban Economics, Elsevier, vol. 45(2), pages 354-384, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Law & Grant M. Scobie, 2018. "KiwiSaver and the accumulation of net wealth," New Zealand Economic Papers, Taylor & Francis Journals, vol. 52(1), pages 1-20, January.
    2. Steven C. Bourassa & Song Shi, 2017. "Understanding New Zealand’s decline in homeownership," Housing Studies, Taylor & Francis Journals, vol. 32(5), pages 693-710, July.
    3. Marek Bryx & Janusz Sobieraj & Dominik Metelski & Izabela Rudzka, 2021. "Buying vs. Renting a Home in View of Young Adults in Poland," Land, MDPI, vol. 10(11), pages 1-31, November.

    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. Emma Gorman & Grant M Scobie & Yongjoon Paek, 2013. "Measuring Saving Rates in New Zealand: An Update," Treasury Working Paper Series 13/04, New Zealand Treasury.
    2. Le, Trinh, 2007. "Does New Zealand have a household saving crisis?," NZIER Working Paper 2007/1, New Zealand Institute of Economic Research.
    3. Koichi Fukumura & Atsushi Yamagishi, 2020. "Minimum wage competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(6), pages 1557-1581, December.
    4. Stanley Fischer, 1991. "Growth, Macroeconomics, and Development," NBER Chapters, in: NBER Macroeconomics Annual 1991, Volume 6, pages 329-379, National Bureau of Economic Research, Inc.
    5. Hilber, Christian A.L., 2010. "New housing supply and the dilution of social capital," Journal of Urban Economics, Elsevier, vol. 67(3), pages 419-437, May.
    6. Sellin, Peter, 1998. "Monetary Policy and the Stock Market: Theory and Empirical Evidence," Working Paper Series 72, Sveriges Riksbank (Central Bank of Sweden).
    7. Sangyup Choi & Davide Furceri & João Tovar Jalles, 2022. "Heterogeneous gains from countercyclical fiscal policy: new evidence from international industry-level data [Optimal investment with costly reversibility]," Oxford Economic Papers, Oxford University Press, vol. 74(3), pages 773-804.
    8. Carpenter, Jeffrey P. & Bowles, Samuel & Gintis, Herbert, 2006. "Mutual Monitoring in Teams: Theory and Experimental Evidence on the Importance of Reciprocity," IZA Discussion Papers 2106, Institute of Labor Economics (IZA).
    9. Munasib, Abdul B.A. & Jordan, Jeffrey L., 2011. "The Effect of Social Capital on the Choice to Use Sustainable Agricultural Practices," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(2), pages 1-15, May.
    10. Karla Hoff & Arijit Sen, 2005. "Homeownership, Community Interactions, and Segregation," American Economic Review, American Economic Association, vol. 95(4), pages 1167-1189, September.
    11. Noviarini, Jelita & Coleman, Andrew & Roberts, Helen & Whiting, Rosalind H., 2023. "Financial literacy and retirees' resource allocation decisions in New Zealand," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    12. Wang, Jia & Winters, John V. & Yuan, Weici, 2022. "Can legal status help unauthorized immigrants achieve the American dream? Evidence from the Deferred Action for Childhood Arrivals program," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    13. Schünemann, Johannes & Trimborn, Timo, 2023. "Boosting taxes for boasting about houses? Status concerns in the housing market," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 120-143.
    14. Gerardi Kristopher & Willen Paul, 2009. "Subprime Mortgages, Foreclosures, and Urban Neighborhoods," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(3), pages 1-37, March.
    15. Fidel Ezeala-Harrison & Glenda Glover & Jane Shaw-Jackson, 2008. "Housing Loan Patterns Toward Minority Borrowers in Mississippi: Analysis of Some Micro Data Evidence of Redlining," The Review of Black Political Economy, Springer;National Economic Association, vol. 35(1), pages 43-54, March.
    16. Eiji Yamamura, 2011. "Effects of social norms and fractionalization on voting behaviour in Japan," Applied Economics, Taylor & Francis Journals, vol. 43(11), pages 1385-1398.
    17. Catalina Amuedo-Dorantes & Kusum Mundra, 2013. "Immigrant Homeownership and Immigration Status: Evidence from Spain," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 204-218, May.
    18. Bauernschuster, Stefan & Falck, Oliver & Heblich, Stephan, 2010. "Social capital access and entrepreneurship," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 821-833, December.
    19. Jan Germen Janmaat, 2019. "The Development of Generalized Trust among Young People in England," Social Sciences, MDPI, vol. 8(11), pages 1-20, October.
    20. Christian A. L. Hilber, 2017. "The Economic Implications of House Price Capitalization: A Synthesis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(2), pages 301-339, April.

    More about this item

    Keywords

    Housing Affordability; House Prices; Homeownership; Housing Expenditures; Rent; Mortgage Payments;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

    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:nzt:nztwps:13/14. 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: CSS Web and Publishing, The Treasury (email available below). General contact details of provider: https://edirc.repec.org/data/tregvnz.html .

    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.