The Unintended Consequences of COVID-19 Economic Responses on First Home Buyers? Evidence from New South Wales, Australia

Bangura, M; Lee, CL; Schafer, B

The Unintended Consequences of COVID-19 Economic Responses on First Home Buyers? Evidence from New South Wales, Australia

Bangura, M

Lee, CL Schafer, B

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Publisher:: MDPI
Publication Type:: Journal Article
Citation:: Buildings, 2023, 13, (5)
Issue Date:: 2023-05-01

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Field	Value	Language
dc.contributor.author	Bangura, M https://orcid.org/0000-0001-6753-8583
dc.contributor.author	Lee, CL
dc.contributor.author	Schafer, B
dc.date.accessioned	2024-01-26T02:27:43Z
dc.date.available	2024-01-26T02:27:43Z
dc.date.issued	2023-05-01
dc.identifier.citation	Buildings, 2023, 13, (5)
dc.identifier.issn	2075-5309
dc.identifier.issn	2075-5309
dc.identifier.uri	http://hdl.handle.net/10453/174969
dc.description.abstract	As in many other nations, the Australian Government implemented monetary and fiscal policies in response to the COVID-19 pandemic to aid economic recovery. Among these policies were specific measures to assist first home buyers (FHBs) in entering the housing market. However, these unprecedented economic policies might have other direct and indirect implications on FHBs, which have yet to be thoroughly explored in the literature. To fill this gap, through a survey, we collected information via public and online mortgage broker platforms from 61 FHBs who successfully entered the housing market or were actively searching during the pandemic. The results found COVID-19 economic responses counterproductive for FHBs, pushing them to a more disadvantaged position due to an overheated property market. In addition, since the onset of the pandemic, property prices have risen significantly, exacerbating housing inequality as FHBs increasingly rely on intergenerational family support, take on more financial risk, and relocate to regional areas due to fear of missing out. The study highlights the need for macroeconomists and housing policymakers to consider these unintended consequences in formulating policies that minimise the adverse effects of economic stimulus measures.
dc.language	English
dc.publisher	MDPI
dc.relation.ispartof	Buildings
dc.relation.isbasedon	10.3390/buildings13051203
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1201 Architecture, 1202 Building, 1203 Design Practice and Management
dc.subject.classification	3301 Architecture
dc.subject.classification	3302 Building
dc.subject.classification	4005 Civil engineering
dc.title	The Unintended Consequences of COVID-19 Economic Responses on First Home Buyers? Evidence from New South Wales, Australia
dc.type	Journal Article
utslib.citation.volume	13
utslib.for	1201 Architecture
utslib.for	1202 Building
utslib.for	1203 Design Practice and Management
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	open_access	*
dc.date.updated	2024-01-26T02:27:42Z
pubs.issue	5
pubs.publication-status	Published
pubs.volume	13
utslib.citation.issue	5

Abstract:

As in many other nations, the Australian Government implemented monetary and fiscal policies in response to the COVID-19 pandemic to aid economic recovery. Among these policies were specific measures to assist first home buyers (FHBs) in entering the housing market. However, these unprecedented economic policies might have other direct and indirect implications on FHBs, which have yet to be thoroughly explored in the literature. To fill this gap, through a survey, we collected information via public and online mortgage broker platforms from 61 FHBs who successfully entered the housing market or were actively searching during the pandemic. The results found COVID-19 economic responses counterproductive for FHBs, pushing them to a more disadvantaged position due to an overheated property market. In addition, since the onset of the pandemic, property prices have risen significantly, exacerbating housing inequality as FHBs increasingly rely on intergenerational family support, take on more financial risk, and relocate to regional areas due to fear of missing out. The study highlights the need for macroeconomists and housing policymakers to consider these unintended consequences in formulating policies that minimise the adverse effects of economic stimulus measures.

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http://hdl.handle.net/10453/174969