Analysing the Relationship between New Housing Supply and Residential Construction Costs with the Regional Heterogeneities

Henry Liu, Kerry London

Research output: Contribution to journalArticle

7 Citations (Scopus)


New housing supply in Australia has been experiencing a low rate of increase in conjunction with a dramatic increase in residential construction costs since the 1990s. This study aims to estimate the relationship between new housing supply and residential construction costs with the regional heterogeneities. Based on a panel error correction model, it can be identified that there is a causal link as well as a significant correlation between new housing supply and construction costs in the Australian sub-national housing construction markets. The model developed in this research assists policy makers to better understand the nature of the supply side of the housing sector and then enact appropriate policies to improve the new housing supply in Australia.
Original languageEnglish
Pages (from-to)58-67
Number of pages10
JournalConstruction Economics and Building
Issue number3
Publication statusPublished - 2011
Externally publishedYes


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