Economics

The impact of urban population on housing cost: the case of Australia

C. Leishman, W. Liang, et al.

Explore the intriguing findings of Chris Leishman, Weidong Liang, and Nicholas Sim as they uncover the rapid urban population growth's impact on housing affordability. This research reveals alarming trends indicating that housing costs are rising faster than population growth, which could deepen income inequality after housing expenses are considered.

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Playback language: English

Index

Abstract

Rapid population expansions in urban areas significantly impact housing costs, posing affordability challenges. Estimating the causal effect is difficult due to confounding factors. This city-level analysis uses a novel instrumental variable (IV) and fixed effects IV estimation. Findings show housing costs increase faster than population growth, potentially exacerbating income inequality after housing expenses.

Publisher

npj Urban Sustainability

Published On

Dec 20, 2023

Authors

Chris Leishman, Weidong Liang, Nicholas Sim

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