Understanding New Zealand’s decline in homeownership

Bourassa, SC; Shi, S

Understanding New Zealand’s decline in homeownership

Bourassa, SC Shi, S

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Publication Type:: Journal Article
Citation:: Housing Studies, 2017, 32 (5), pp. 693 - 710
Issue Date:: 2017-07-04

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Field	Value	Language
dc.contributor.author	Bourassa, SC	en_US
dc.contributor.author	Shi, S https://orcid.org/0000-0003-4188-5151	en_US
dc.date.issued	2017-07-04	en_US
dc.identifier.citation	Housing Studies, 2017, 32 (5), pp. 693 - 710	en_US
dc.identifier.issn	0267-3037	en_US
dc.identifier.uri	http://hdl.handle.net/10453/121879
dc.description.abstract	© 2016 Informa UK Limited, trading as Taylor & Francis Group. Homeownership is an important component of the New Zealand lifestyle. In recent decades, however, the ownership rate has been declining and the reasons are poorly understood. This paper explains the decline using a decomposition technique that has been applied in other contexts. We find that borrowing constraints and ethnicity have been particularly important contributors to the decline. Rapidly rising house prices clearly have played a major role in the inability of income to keep up with prices and the increased impact of borrowing constraints. We also show that the increased down payment requirements imposed by the Reserve Bank of New Zealand in 2013 are unlikely to have affected the ownership rate.	en_US
dc.relation.ispartof	Housing Studies	en_US
dc.relation.isbasedon	10.1080/02673037.2016.1228851	en_US
dc.subject.classification	Urban & Regional Planning	en_US
dc.title	Understanding New Zealand’s decline in homeownership	en_US
dc.type	Journal Article
utslib.citation.volume	5	en_US
utslib.citation.volume	32	en_US
utslib.for	1205 Urban and Regional Planning	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	1604 Human Geography	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building/School of Built Environment
utslib.copyright.status	closed_access
pubs.issue	5	en_US
pubs.publication-status	Published	en_US
pubs.volume	32	en_US

Abstract:

© 2016 Informa UK Limited, trading as Taylor & Francis Group. Homeownership is an important component of the New Zealand lifestyle. In recent decades, however, the ownership rate has been declining and the reasons are poorly understood. This paper explains the decline using a decomposition technique that has been applied in other contexts. We find that borrowing constraints and ethnicity have been particularly important contributors to the decline. Rapidly rising house prices clearly have played a major role in the inability of income to keep up with prices and the increased impact of borrowing constraints. We also show that the increased down payment requirements imposed by the Reserve Bank of New Zealand in 2013 are unlikely to have affected the ownership rate.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/121879