Eres : Digital Library : Works

Paper eres2009_223:
Increasing Housing Affordability by Identifying and Monitoring Property Cycles

id eres2009_223
authors Reed, Richard; Wu, Hao
year 2009
title Increasing Housing Affordability by Identifying and Monitoring Property Cycles
source 16th Annual European Real Estate Society Conference in Stockholm, Sweden
summary Cycle theory is one of the basic human observations of the natural world as well as in human societies. It is defined by the Dictionary of Theories as “events, economics and political systems move through cycles similar to the natural life-cycles of living beings” (Bothamley 2002, p.133). Being a subset of the market system, the level of house prices can be studied and explained in a way that is consistent with how the stability of the entire system is studied. Throughout the 20th century leading economists including Mitchell (1927) and Sherman (1991) defined the business cycle as a phenomenon found typically in a market economy and not to be seen in a pure planned economy. The character and importance of the market system and the pricing system has been demonstrated extensively in the literature with competing evidence and theories continuously being introduced (Friedman 1981; Samuelson 1992) (add Samuelson and Nordhaus, 2001). The history of modern society is where each market system is continuously seeking to identify the ‘balancing point’ or ‘equilibrium’. As Schumpeter (1939) explained: “analysing business cycles means neither more nor less than analysing the economic process of the capitalist era”. This proposal uses this proven body of knowledge about property cycles to examine and forecast medium to long-term housing cycles for individual suburbs in seven capital cities in Australia (i.e. Adelaide, Brisbane, Canberra, Darwin, Hobart, Melbourne, Perth and Sydney) , which in turn will reduce housing stress and increase affordability. An increased certainty about the potential for lower house prices will give household a higher level of confidence when considering whether to enter the market. Property cycle research must be supported by comprehensive data sources which are only recently available due to advancements in technology
keywords Housing affordability, property cycles, residential property, housing stress
series ERES:conference
email r.reed@deakin.edu.au, haow@unimelb.edu.au
content file.ppt (2,096,640 bytes)
discussion No discussions. Post discussion ...
ratings
session Cycles and Crises
last changed 2009/09/16 16:22
HOMELOGIN (you are user _anon_932521 from group guest) Powered by SciX Open Publishing Services 1.002