A recent study indicates that housing constitutes a significant cost of raising a child.
A study from the University of Sydney shows how rising house prices affect homeowners’ and renters’ intentions to have children differently.
The study, which was based on data from 2001 to 2018, shows that rising housing markets typically encourage landlords to have more children.
The opposite was true, however, for renters, who often put aside their family’s development plans amid the heated housing market.
University of Sydney associate professor Stephen Whelan said the study findings suggest that reproductive intentions are stronger for homeowners and weaker for renters in the current market.
“While there has been much discussion about appropriate policy settings in light of the rapid increase in home prices and their impact on home ownership, there has been little discussion about the impact 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 home prices boosts the likelihood of homeowners expanding their families by 18%.
The prospect is more significant among married mortgage holders.
Mr. Whelan said the results of the study indicated that housing constitutes a significant cost of raising a child.
“With the cost of housing rising, it is becoming more and more expensive to have children in Australia,” he said.
“Tenants, who are generally less financially secure than homeowners, may choose to delay having children in the face of rapidly rising housing prices.”
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