The economics of housing supply: Key concepts and issues
Housing affordability is typically discussed in terms of the level of housing costs paid by a household relative to the household’s income. Housing costs are in turn affected by the available supply of housing. Across Australia, households are facing significant housing affordability challenges. These challenges are often more pronounced in NSW, and statistics from March 2024 show that: the ratio of median dwelling price to median income in Sydney and rest of NSW were the highest among all capital cities and regional areas. The number of years it takes to save a home deposit was also highest in NSW, sitting at 12.6 years in Sydney and 11.6 years in the rest of NSW. Provides an outlook on current evidence and offers insights into the dynamics of housing supply. Explores how housing supply responds to demand and implications for affordability. Draws attention to some commonly overlooked themes and unpacks assumptions about factors that affect housing supply.
This paper explores how housing supply responds to demand and implications for affordability. It draws attention to some commonly overlooked themes and unpacks assumptions about factors that affect housing supply. The paper provides an outlook on current evidence and offers insights into the dynamics of housing supply.
Rachel Ong ViforJ, PhD
Professor of Economics
Chris Leishman, PhD
Professor of Property and Housing Economics
Research Paper 7, 2024
Rachel Ong ViforJ is Professor of Economics at Curtin University. Her research interests include intra- and intergenerational housing inequalities, housing affordability dynamics, and the links between housing and the economy. Chris Leishman is Professor of Property and Housing Economics at the University of South Australia. He is best known for his work on modelling housing supply and housing need in Australia and the UK.
Published: 13 August 2024