Socio-Economic Impact Of Higher Housing Prices In Sydney

Project Objective

Discuss About The Socio Economical Impact Of Higher Housing.

Sydney in Australia has experienced an extensive and sustainable increase of housing prices for last 25 periods between 1991 and 2016. According to the Housing NSW, the median piece of Greater Sydney dwellings has remained $158000 while in 2016 this price has become $776000 (Ge 2018). On the other side housing prices of Greater Sydney has increased more compare to that of Sydney, for instance, in 1991 the median price of houses in this city has $160000 while in 2016 this median price has become $865000 (Mulley and Tsai 2017). In this context, it can be said that based on Australian Bureau of Statistics (ABS), Sydney’s median unit housing price has remained higher compare to that of Melbourne and Canberra. This increasing price of houses has affected low-income households of this city from various socio-economical aspects and consequently, this phenomenon can increase disadvantage and vulnerability of an individual. Future buyers experience an increasing gap of deposit between their average income and median house prices. Hence, according to Bankwest, to buy house for first time, buyers need to save for almost 9 years to purchase a median priced house (Chappell and Campbell 2018). Thus, in this research proposal, researcher intends to see that whether this increasing housing price has influenced socio-economical aspects on low-income households or not.

To proceed with this project, it is essential for the researcher to set some objectives, based on which the concerned person can conduct the research further. Moreover, those objectives can help the person to conduct relative literature review based on this topic (Habibi, Barzinpour and Sadjadi 2018). Those objectives are:

• To define concept of affordable houses along with some conflicts
• To identify chief problem behind increasing price of houses in Sydney
• To recognize housing affordability issues that can influence decisions and practices of houses socially and economically
• To see that whether housing price has actually influenced low-income group people socially and economically or not.

This concerned research proposal can help readers to understand about the main concept of affordable households and various conflicts related to this concept. As the chief focus of this research proposal is to analyze the main reason behind increasing house price of Sydney and its impact on low-income households from their socio-political aspects, this paper can help policymakers to understand the real scenario (Wilson 2017). Moreover, the paper can also focus on some chief factors that have helped housing prices to increase further and policymakers can analyze and remove those relative factors further so that this price can decrease in future. Moreover, through identifying housing affordability issues, middle and low income households can set their targets and plan to recover from this problem so that can purchase a house in Sydney. In this context, the local government of Sydney and the government of Australia can take various policies to overcome this problem. Policies can be in the form of proving subsidies or by providing new houses with low pieces. Hence, the ultimate outcome for this research proposal can be helpful.

Project Scope

According to Milligan, the concept of likelihood regarding housing affordability can represent the chief necessities of families who belong to middle and low-income group and they cannot afford houses without any external help due to their low income (Milligan and Fagan 2007). Hence, housing affordability focuses housing, which reduces income of families to get and pay for an affordable house without experiencing unnecessary fiscal difficulties. On the other side, Bramley states affordability as straightforward plan that needs to understand or it can be difficult to tie all purposes and intents especially regarding extension of changing states of families and friends for a while. Reasonable analysis can help to control various approaches through assessing relationship between income of families and lodging costs. Hulchanski gives this concept where the author states that for a degree approach utilization of an expected benchmark or percentile levels related to benefits is required when doubts occur. The cost of this survey is based on changeability between forms of family or spots and furthermore the cost is also associated with dynamic conditions. For utilizing a degree approach, various particular and associated issues can be found (Hulchanski 1995). Among those issues, an inside issue is related with the degree approach. According to this issue, pay and changing cost is essential to finish life cycle where everything is considered with higher degree of pay expenditure related to households and purchase in the early year of home progress or lower and advance degrees later. In the early year, reimbursement force occurs regarding higher expenses between lively house cost and pay swelling. This is because necessities can take place after lower genuine expenses and for this huge change is required.

Milligan in this context has said that requirement of valuable implications to represent inexpensive houses are generally specific and is utilized in the methodology and program setting. For any case, the value implications have normal features, for instance, an insisting idea regarding moderateness and a suggestion regarding question groups for this method is proposed (Milligan and Fagan 2007). On the other side, Heather MacDonald and other co-researchers have researched on the geography regarding rental housing discrimination, social exclusion and segregation with a particular focus on Sydney. They have investigated that whether rental housing discrimination can direct against two predominant groups of ethnic minority in Sydney, Australia (MacDonald, Galster and Dufty-Jones 2018). This discrimination can occur in neighborhoods with mixing of ethnicities, quality of social goods or socioeconomic profiles. Moreover, this paper has intended to see that whether geographic pattern can reinforce spatial disadvantages regarding these minorities in a proper way to support their social exclusion. Hence, they have constructed a measurements regarding differential treatment, which is based on in-person paired testing based on Anglo, Muslim and Indian of Middle Eastern testers in 2013. Through using principle component analysis, they have summarized four dimensions related to postcode-level social goods. This principle analysis reflects crime rates, school quality, proximate jobs and their growth along with resident employment rates. Their ordinary least squares (OLS) regressions represent that differential treatment in the rental market of Sydney is strongly associated with an ethnic composition of neighborhood while two aspects of social goods involve both desirable and undesirable components. However, it is not related to the socio-economic characteristics of the population of neighborhood.

Literature Review

In Sydney, through the last two decades, Cabin has been affected by flaunt based procedures by making levels of privatization, deregulation and devolution. The clarification behind this move is presented based on vulnerability, which the market appearances secure by more recognizable efficient resources. Moreover, its responsiveness to change comprehends supply conditions. Regardless, seeing these affinities, it can be added that a hotel structure authentically is summoned by the market (Beer 2007). Unlike distinctive European nations, after 195, Australia has not transited a liberal social cabin division. Rather, it has used a instigate level and indirect sponsorship to help private commitment for hotel and for both private rental and home ownership.  

Davison, Han and Liu have discussed about the impacts of affordable housing development on host neighborhoods and for this, they have done two case studies on Australia. Local community has opposed the proposals regarding development of affordable houses due to apprehensions about the potential negative impacts on host neighborhoods (Davison, Han and Liu 2017).  Hence, the concerned authors have done both quantitative and qualitative analysis to observe that whether there is any empirical source to oppose in the context of Australia. For this, they have done a hedonic regression analysis to analyze the impacts of 17 affordable housing developments based on local property sales values in Brisbane. Moreover, qualitative affects regarding development of affordable houses on neighbors are conducted by a doorstep survey with 141 households of Sydney. The outcome of these surveys implies that effects on affordable housing development on host neighborhoods can be small for most of the cases. Moreover, they also have found that affordable housing development has positive or negative effects on property sales values though their affects have remained minimal. Their doorstep survey has found that 78% of people have experienced less impacts regarding affordability of housing price development in their area. Hence, they have concluded their paper through considering practical implications of their findings.

The researcher has considered various literatures for understanding the some relative scenario for this specified topic. However, those literatures have not considered any socio-economical impacts on lower income group of people (Chen 2017). Instead of this, those researchers have tried to focus on various issues that have influenced housing prices to increase further.

Literature gap focuses on some missing contents that can be discussed further (Kearney 2017). The above-discussed literatures have discussed about higher costs of houses and the way people can afford it and how their income have affected adversely for this higher price of houses. Moreover, some of those papers have discussed about impact of higher housing prices on entire citizens of Australia. However, those above-mentioned researchers have not discussed about the impact of this higher housing price on particularly lower-income group people from the socio-economical concepts. Hence, this paper has intended to do this research based on that lower-income group of people in Sydney from this socio-economical context.

Based on above discussed research objectives and literate gap, this paper has intended to form some research questions based on which the concerned researcher can conduct this analysis further. In this context, it needs to mention that those questions can be divided two parts, which are, primary and secondary one (Eller 2015). Primary question directly focus on the chief problem related to this topic while secondary question focuses on some other relative questions that can help researcher to precede this research further.

1 Q. How does the higher price of houses affect lower-income group people of Sydney from their socio-political aspects?

Secondary questions:

1Q: What are the chief problems behind increasing housing prices in Sydney?

2Q: How to recognize housing affordability issues for influencing decisions regarding purchasing a house?

3Q: Does higher housing prices actually influence lower-income group people in Sydney?

4Q: How does the higher housing price create discrimination between higher and lower income group of people in Sydney?

5Q: What is the amount of money that a lower income household required to save for purchasing a house with minimum price?

6Q: What does the minimum time duration that a lower income household require for purchasing a house with minimum price?

7Q: Is there any differences between demand for housing purchase and demand for house rent among people of lower income group in Sydney?

8Q: Is there any government aid that can support lower income household to purchase a house?

Hypothesis:

To conduct the research further, the researcher needs to analyze some statistical data based on some particular tools of statistics. The chief focus of the concerned researcher is to find some proper outcome that can provide answer for above-mentioned questions of research paper. For doing so, it is essential for the researcher to make some hypothesis (List, Shaikh and Xu 2016). According to the concept of statistics, there are two types of hypothesis, which are, null hypothesis (H0) and alternative hypothesis (H1).

H (0): Higher housing prices have negatively influenced lower-income households in Sydney from their socio-economical aspects

H (1): Higher housing prices have not negatively influenced lower-income households in Sydney from their socio-economical aspects to a large extend.

To conduct this research, researcher needs to collect statistical data. However, in statistics, there are two types of data, which are, qualitative and quantitative (Babatunde and Low 2015). However, in this context, it is beneficial for the researcher to observe quantitative data, for instance, income of lower income-group households, median price of houses, rent of house fixing rate before purchase it.

In this context, it needs to mention that, for a researcher it is not possible to consider entire lower income group households in Sydney as this population size can become very large. For this, the researcher can take some households through random sampling to conduct the entire research (Arnold et al. 2018). After collecting some households as sample of particular people of lower income group, the researcher can further conduct statistical analyses. Initially, the concerned person can run a regression to see a relation between lower income and daily expenses of households. After that, the researcher can analyze that how fixing cost for a house of lower price can influence daily expenses of a lower income household. After that, a hypothesis testing can help to researcher to obtain accurate hypothesis. Hence, to collect primary data from households the researcher needs to make a survey report. on the other side, housing prices can be obtained from various secondary sources.

The chief limitation of this research is based on its sampling technique. As the concerned person cannot take entire population for analysis, sampling error can be occurred. Moreover, as the researcher is considering quantitative data only, it cannot get some outcomes related to qualitative data.

Conclusion:

The researcher has intended to find some factors that can help the concerned person to understand about the real scenario that whether higher housing prices have influenced household with lower income group or not and this has any socio-economical influence. for doing so, the person has analyzed various literatures and based on this has constructed objectives and questions related to this concept. for this, the concerned person has considered null hypothesis and alternative hypothesis and also has constructed research methodology for further research.

Reference List:

Arnold, P., Confrey, J., Jones, R.S., Lee, H.S. and Pfannkuch, M., 2018. Statistics Learning Trajectories. In International Handbook of Research in Statistics Education (pp. 295-326). Springer, Cham.

Babatunde, Y. and Low, S.P., 2015. Research Design and Methodology. In Cross-Cultural Management and Quality Performance (pp. 93-113). Springer, Singapore.

Beer, A., Kearins, B. and Pieters, H., 2007. Housing affordability and planning in Australia: the challenge of policy under neo-liberalism. Housing studies, 22(1), pp.11-24.

Bramley, G., 2006. Affordability comes of age. Building on the Past: visions of housing futures, pp.127-61.

Chappell, J. and Campbell, N., 2018. The Housing Gap—Sydney, Australia. In Sustainable Development Research in the Asia-Pacific Region (pp. 293-304). Springer, Cham.

Chen, M., 2017. Philosophy and Literature: Problems of a Philosophical Subdiscipline. Philosophy and Literature, 41(2), pp.471-482.

Davison, G., Han, H. and Liu, E., 2017. The impacts of affordable housing development on host neighbourhoods: two Australian case studies. Journal of Housing and the Built Environment, 32(4), pp.733-753.

Eller, F., 2015. Research questions and hypotheses. In The Effectiveness of Neurofeedback Training for Children with Autism Spectrum Disorders (pp. 31-32). Springer, Wiesbaden.

Ge, X.J., 2018. Effects of ethnic changes on house prices: Sydney cases. International Journal of Housing Markets and Analysis.

Habibi, F., Barzinpour, F. and Sadjadi, S., 2018. Resource-constrained project scheduling problem: review of past and recent developments. Journal of Project Management, 3(2), pp.55-88.

Hulchanski, J.D., 1995. The concept of housing affordability: Six contemporary uses of the housing expenditure?to?income ratio. Housing studies, 10(4), pp.471-491.

Kearney, M.H., 2017. Challenges of finding and filling a gap in the literature. Research in nursing & health, 40(5), pp.393-395.

List, J.A., Shaikh, A.M. and Xu, Y., 2016. Multiple hypothesis testing in experimental economics (No. w21875). National Bureau of Economic Research.

MacDonald, H., Galster, G. and Dufty-Jones, R., 2018. The geography of rental housing discrimination, segregation, and social exclusion: New evidence from Sydney. Journal of Urban Affairs, 40(2), pp.226-245.

Milligan, P. G. and Fagan K, V., 2007. Approaches to Evaluation of Affordable Housing Initiatives in Australia. National Research Venture 3: Housing affordability for lower income Australians, Volume 7, pp. 15-30.

Mulley, C. and Tsai, C.H., 2017. Impact of bus rapid transit on housing price and accessibility changes in Sydney: A repeat sales approach. International Journal of Sustainable Transportation, 11(1), pp.3-10.

Wilson, A., 2017. Approach Redefines Ideal Project Scope and Facilities Size for Field Development. Journal of Petroleum Technology, 69(10), pp.77-78.

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