Housing markets, economic productivity, and risk: international evidence and policy implications for Australia - Volume 1: Outcomes of an investigative panel

Inefficient housing markets can have widespread and lasting impacts on productivity and the wider economy. Poor spatial structures, for example, mean increased travel time and congestion, while lack of affordable housing near employment exacerbates social inequalities and constrains the effective operation of labour markets. The Global Financial Crisis (GFC) has exposed potential for significant negative spillovers between housing and the broader economy. A number of studies and government inquiries have shown how Australia's fiscal settings have stimulated housing demand without directly supporting new production, thus exacerbating price inflation and consequent affordability pressures. At the same time, it is unclear how effective recent policy efforts to alleviate potential constraints to new supply have been in addressing Australia's housing market problems. In this context, and building on recent international experience, this project, funded by the Australian Housing and Urban Research Institute (AHURI), aimed to examine key concepts and identify key indicators of housing system efficiency, responsiveness, and risks, relevant to Australia. It also aimed to examine wider implications of particular housing supply settings and outcomes, for economic productivity in Australian cities and regions.