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作者

Daniel Melser;Rachel Ong ViforJ;Gavin Wood

来源

CITIES,Vol.128,Issue1,Article 103817

语言

英文

关键字

R31;C23;R12;Housing elasticity of supply;Urban and regional economics;Local government areas;Australia;Instrumental variables

作者单位

Monash University, Melbourne, Australia;Curtin University, Perth, Australia;RMIT University, Melbourne, Australia;Monash University, Melbourne, Australia;Curtin University, Perth, Australia;RMIT University, Melbourne, Australia

摘要

The housing elasticity of supply (HES)—how housing supply responds to price rises—has been a major preoccupation of policymakers in the face of worsening housing affordability in many countries. Yet we lack an understanding of just how this quantity varies across regions, and within cities, or the factors which drive it. We address this question by estimating the HES for 341 spatially disaggregated Australian local government areas (LGAs) from 2001 to 2019 for houses and units (attached homes). Our estimates document considerable variation in HES estimates across LGAs. For houses it ranges from 0.17 at the 25th percentile to 0.44 at the 75th percentile while for units it varies between 0.56 and 1.17. Interestingly, we find no correlation between the LGA HES estimates for houses and units. We explore how variation in the local HES relates to potential housing supply drivers such as accessibility to central business districts, topography, temperature range, annual precipitation, and political orientation. The most important driver of the HES is accessibility—LGAs on the city-fringe have the highest HES for houses, while for units it is highest in the inner-city. We find political orientation and annual precipitation have some impact on the HES for units.