For the first time in Australia, people’s plans to have children and the outcomes of this have been measured against property prices. In a bullish market, property owners intend to and do have more children. For non-homeowners with children, an increase in house prices is associated with lower intentions to have children.
The research was led by University of Sydney economists and published in the Journal of Housing Economics.
Nationally, property prices have risen by more than 20 percent over the past two years. The study’s results, based on data from 2001 to 2018, are now likely even stronger, lead author Associate Professor Stephen Whelan said.
“While there has been significant debate about appropriate policy settings in light of rapidly increasing house prices and its impact on home ownership, there has been little discussion of the implication of housing market developments on people’s decisions to have children,” he said.