Segmentation of Australian housing markets: 1989-98

Abstract

The Australian national housing market has gone through a long recovery to achieve its current level. Using econometric modelling techniques, this paper has found that the real weekly earnings per employee, the nominal mortgage rates, the unemployment rates and the housing construction activities are the key driving forces behind to lead the national housing market out of its recession. The Australian national housing market comprises a series of segmented subnational housing markets. It implies the disparities of economic performance at subnational level.