CoPS/IMPACT Working Paper Number G-344

Title: An impossible triangle? The impact of housing policy on affordability, accessibility, and efficiency

Authors: Jason Nassios, James Giesecke and Xianglong Locky Liu


While the impact of housing-related tax instruments on economic efficiency and housing markets has been widely studied, the impact of expenditure instruments has received less attention. Housing grants, transfer duty concessions, shared equity schemes, and rental assistance, are several such expenditure instruments that generate debate regarding their efficacy in achieving housing policy aims. This study examines the impact of these instruments on the housing market. We find that each instrument addresses a specific housing policy aim, but cannot simultaneously improve affordability, accessibility, and efficiency. This finding reinforces the need for policymakers to establish clear and targeted objectives to guide housing policy choices.

JEL classification: C68; E62; H2; H71; R38

Keywords: First homeowner grant; Shared equity; Transfer duty concession; Homeownership; Housing affordability; Housing prices; Excess burden.

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