Analysing the Relationship between New Housing Supply and Residential Construction Costs with Regional Heterogeneities

Junxiao Liu; Kerry London

doi:10.5130/AJCEB.v11i3.2174

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Published: Sep 21, 2011

DOI: https://doi.org/10.5130/AJCEB.v11i3.2174

Keywords:

new housing supply, residential construction costs, regional heterogeneities

Junxiao Liu

School of Architecture & Building, Deakin University

Kerry London

School of Property, Construction & Project Management, RMIT University

Abstract

New housing supply in Australia has been experiencing a low increasing rate in conjunction with a dramatic increase in residential construction costs since the 1990s. This study aims to estimate the relationship between new housing supply and residential construction costs with the regional heterogeneities. Based on a panel error correction model, it can be identified that there is a causal link and a significant correlation between new housing supply and construction costs in the Australian sub-national housing construction markets. The model developed in this research assists policy makers to better understand the nature of the supply side of the housing sector and then enact appropriate policies to improve the new housing supply in Australia.

How to Cite

Liu, J., & London, K. (2011). Analysing the Relationship between New Housing Supply and Residential Construction Costs with Regional Heterogeneities. Construction Economics and Building, 11(3), 58-67. https://doi.org/10.5130/AJCEB.v11i3.2174

Issue

Vol. 11 No. 3 (2011): AJCEB

Section

Articles (Peer reviewed)

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