Skip to main content
padlock icon - secure page this page is secure

Factors Influencing Housing Equity Withdrawal: Evidence from a Microeconomic Survey

Buy Article:

$52.00 + tax (Refund Policy)

The increase in housing equity withdrawal and coincident decline in aggregate savings rates in a number of countries in recent years is consistent with the consumption-smoothing model of housing equity withdrawal. However, there are a variety of other theoretical models that purport to explain why households withdraw and inject equity. To assess the relative importance of these various theories, we use a comprehensive survey of the equity withdrawal and injection decisions of Australian households. We find support for several theories. Life cycle considerations appear to be most important, with older households accounting for the bulk of equity withdrawn. Portfolio rebalancing considerations also appear important, with financial asset accumulation the primary use of withdrawn funds. Consumption-smoothing motives play an influential role, although primarily for smaller-value transactions.
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Keywords: E21; E51

Document Type: Research Article

Affiliations: 1: Reserve Bank of Australia, Sydney, New South Wales, Australia 2: Reserve Bank of New Zealand, Wellington, New Zealand

Publication date: December 1, 2008

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more