Property Owners in Australia: A Snapshot
Property represents more than half of all household assets in Australia and its share has been rising in recent years. Since most property purchases require debt financing because of the size of the purchase, property makes up a large part of both sides of households’ balance sheets. This paper uses household-level data to examine what determines the ownership of residential property and the holding of property debt by households in Australia. We examine these decisions for both owner-occupied and investment property. The results suggest that the household’s age, composition, income and wealth are important factors determining property ownership and gearing decisions. Income and wealth are found to be more influential in determining the value of property owned, while the household’s age is more influential in determining the gearing. Household composition is important for decisions on owner-occupied property, but has a limited influence on investment property decisions.
|Date of creation:||May 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.rba.gov.au/
More information through EDIRC
|Order Information:||Web: http://www.rba.gov.au/forms/rdp-order-form/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leung, S.F. & Yu, S., 1992.
"On the Choice Between Sample Selection and Two-Part Models,"
RCER Working Papers
337, University of Rochester - Center for Economic Research (RCER).
- Leung, Siu Fai & Yu, Shihti, 1996. "On the choice between sample selection and two-part models," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 197-229.
- Ioannides, Yannis M & Rosenthal, Stuart S, 1994. "Estimating the Consumption and Investment Demands for Housing and Their Effect on Housing Tenure Status," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 127-41, February.
- Luci Ellis & Jeremy Lawson & Laura Roberts-Thomson, 2003. "Housing Leverage in Australia," RBA Research Discussion Papers rdp2003-09, Reserve Bank of Australia.
- Haurin Donald R. & Hendershott Patric H. & Kim Dongwook, 1994. "Housing Decisions of American Youth," Journal of Urban Economics, Elsevier, vol. 35(1), pages 28-45, January.
- Arrondel, Luc & Lefebvre, Bruno, 2001. "Behavior of Household Portfolios in France: The Role of Housing," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(4), pages 489-514, December.
- Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
- Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
- Asberg, Per, 1999. "Housing Decisions of Young Swedish Adults," Journal of Housing Economics, Elsevier, vol. 8(2), pages 116-143, June.
- Lawrence D. Jones, 1989. "Current Wealth and Tenure Choice," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(1), pages 17-40.
- Painter, Gary, 2000. "Tenure Choice with Sample Selection: Differences among Alternative Samples," Journal of Housing Economics, Elsevier, vol. 9(3), pages 197-213, September.
- Judith Yates, 2000. "Is Australia's Home-ownership Rate Really Stable? An Examination of Change between 1975 and 1994," Urban Studies, Urban Studies Journal Limited, vol. 37(2), pages 319-342, February.
- Steven F. Venti & David A. Wise, 2000. "Aging and Housing Equity," NBER Working Papers 7882, National Bureau of Economic Research, Inc.
- Arthur B. Kennickell & Martha Starr-McCluer & Brian J. Surette, 2000. "Recent changes in U. S. family finances: results from the 1998 Survey of Consumer Finances," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jan, pages 1-29.
- Peter Linneman & Susan Wachter, 1989. "The Impacts of Borrowing Constraints on Homeownership," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(4), pages 389-402.
- King, Mervyn A. & Leape, Jonathan I., 1998. "Wealth and portfolio composition: Theory and evidence," Journal of Public Economics, Elsevier, vol. 69(2), pages 155-193, June.
- Henderson, J Vernon & Ionnides, Yannis M, 1986. "Tenure Choice and the Demand for Housing," Economica, London School of Economics and Political Science, vol. 53(210), pages 231-46, May.
- Justo Manrique & Kalu Ojah, 2003. "The demand for housing in Spain: an endogenous switching regression analysis," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 323-336.
- James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
- Duan, Naihua, et al, 1983. "A Comparison of Alternative Models for the Demand for Medical Care," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(2), pages 115-26, April.
When requesting a correction, please mention this item's handle: RePEc:rba:rbardp:rdp2005-03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paula Drew)
If references are entirely missing, you can add them using this form.