A study from University of Sydney shows how rising house prices affects homeowners and renters’ child-bearing intentions differently.
The study, which was based on data from 2001 to 2018, showed that bullish housing markets usually encourage property owners to have more children.
The opposite was true, however, for renters, who often set aside plans of growing their families amid a hot housing market.
University of Sydney associate professor Stephen Whelan said the results of the study indicate that child-bearing intentions are stronger for homeowners and weaker for renters in the current market.
“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.
According to the study, a $100,000 increase in housing wealth due to an increase in house prices boost the probability of homeowners to expand their family by 18%.
The likelihood is more significant among married mortgage holders.
Mr Whelan said the results of the study indicate how housing constitutes a major cost of raising a child.
“As the cost of housing increases, having children in Australia has become more expensive,” he said.
“Renters, who are generally less financially secure than homeowners, may choose to delay having children in the face of rapidly rising house prices.”
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