Housing affordability dynamics in Sydney's housing sub-markets: the case for spatially sensitive policy

Abstract

This paper argues that policy makers need a more fine-grained understanding of housing submarkets, to avoid the often perverse outcomes of aspatial incentives and regulations on housing affordability. A cluster analysis provides an outline of the differentiation within Sydney's housing submarkets, identifying five distinct types of submarkets. The policy implications of these distinct submarkets are explored to demonstrate the utility of a spatially sensitive decision support system.