Housing Market in Australia Essay Example | Topics and Well Written Essays - 1500 words

Housing Market in Australia - Essay Example Bourassa (1996) has stated that the measures required for identifying the affordability of housing-ownership is primarily based upon the accumulated data but it is required to ignore the distribution of wealth and income as well as the ranges of housing prices. For analyzing the trend of housing pattern in Australia, Bourassa (1996) builds a study based upon the previous research of Grigsby and Rosenburg. The study then, proposes a method of Borrowing Constraint. The method of Borrowing Constraint was applied from the year 1989 to 1990 for household survey data for Melbourne and Sydney, Australia. The results concluded that there are hypothetical changes in interest rates and deposit requirements are kept minimum. Along with these results, furthermore, it had been concluded that under any given scenario, there is very diminutive percentage of people who are living in rented households to afford private ownership without putting themselves into the circle of poverty (Bourassa). Anothe r study conducted by Beer (1999) stated that there have been many changes in the private rental sector within the housing system of Australia. It has moved itself from the tenure of transition that is primarily comprised of saving of young household. Increase in the prices of real houses, increasing interest rates, increase in the rate of deaths of household through separation and divorces, changes in the pays of workers and inability to maintain the position of the tenure. Moreover, Beer (1999) also stated that there has been decline in access to public housing. Research conducted by Beer (1999) had emphasized on the changing dimensions of the private rental housing within Australia. The nature of investors and the size of investment in the sector of housing stocks had also been examined. Furthermore, the impact of the investment strategies on the housing sector market of Australia was also highlighted (Beer). Hayward (2008) conducted a study to determine whether the property owner s in Australia are reluctant or not. The paper covered the history of public housing and property owner in Australia. The study conducted by Hayward (2008) revealed that the golden era of public housing in Australia was from 1945 to 1956. During this time, the Commonwealth State Housing Agreement (CSHA) laid a foundation for making public housing system more viable in Australia. After that, the history of public housing started to cripple in this country. Emphasis on housing policy shifted from rentals to home ownership. Despite of viewing the development of State Housing Authorities, some people claim that this decade was not as substantial nor it was that decade where it would be favorable to return. In long run, the history of Australia is the one where the Government has been best reluctant landlords. The era from 1945 to 1956 is considered as best understood in this general trend (Hayward). The paper presented by Wulff and Maher (2010) examined the housing characteristics of pr ivate renters in Australia in long run. The study comprised of a sample of 4677 private renters. The sample had been drawn from ABS Survey of Rental Tenants 1994. The results revealed that 40% of the renters were long-term renters, having rented their property for more than 10 years, which shows that there has been substantial trend of rented household in Australia. Long-term conditions were further divided into