Home Introducing how housing characteristics can influence urban productivity BACK TO brief Share brief Introducing how housing characteristics can influence urban productivity This Brief introduces and summarises the concept that housing characteristics — such as a dwelling’s qualities, location, neighbourhood and price — can influence wider urban productivity growth. This Brief incorporates material previously published in AHURI’s Policy Issues Analysis series in 2015. 02 Oct 2022 AHURI research has identified four overarching housing characteristics that can influence urban productivity growth: the dwelling’s qualities, location, neighbourhood and price. Although urban productivity growth is measured at the city rather than household level, the human and social capital of households are key inputs into how urban environments function productively. Housing characteristic Intermediary Examples of productivity impacts 1. Dwelling qualities Size/ comfort Build quality Human capital Impact on children's physical safety and development Good light/ventilation reducing inhabitants' rates of sickness and use of medical services Impact on children's ability to study at home. Space to create a home business Environmental efficiency Reduce energy costs/carbon footprint/water use 2. Dwelling location Transport Infrastructure Increased choice of employment and education opportunities, consumer products, health institutions and social activities. Reduced time and cost in travelling to jobs, education institutions, health institutions, shopping, etc. 3. Dwelling neighbourhood Social relations (Social capital formation and trust) Perception by others of the neighbourhood e.g. employers discriminating against particular neighbourhoods. Quality and variety of interaction in the local community (which can lead to business innovation etc.). 4. Dwelling prices (purchase costs or rents) High costs/ reduced availability Labour supply is affected as high housing costs inhibit people's ability to move to or stay in higher cost areas where there is work. Unemployed people living in high housing cost areas are more likely to move than unemployed people in low cost areas. Reduce spending on tradeable goods. Deters agglomeration. Change in prices Encourage consumption (by home owners/buyers) These housing characteristics can impact urban productivity either directly or indirectly. An example of a direct impact can be seen in the 'location' characteristic of increasingly polarised cities, whereby low-moderate income households can't afford to live close to where the jobs are (particularly those jobs in the CBD), which leads to reduced employment opportunities for these households, and reduced profitability for CBD businesses who can't pay low-waged staff enough to make long commute times worth their while. Examples of indirect impacts include the 'quality' characteristic of health whereby damp homes exacerbate respiratory diseases, which lead to increased sick leave payments, reduced business productivity and higher health costs for the community, or when crowded homes don't have quiet places for children to do homework or study, thereby reducing education outcomes. This Brief incorporates material previously published in AHURI’s Policy Issues Analysis series. Related resources Report Making connections: housing, productivity and economic development This is a scoping study with the immediate aim of reviewing links between housing and productivity. view details Report Housing, location and employment This is the final report for the project Housing, location and employment view details brief How linking housing, infrastructure and transport policies can improve Australia's urban productivity There are costs to the general economy when there is a mismatch between the location of jobs, affordable housing opportunities and inadequate public transport. This Brief demonstrates that when good transport and other infrastructure connects householders to a wide range of employment opportunities, urban productivity can be enhanced. view details brief New York: a case study in providing affordable housing to boost urban productivity New York city (USA) initiated a 10-year plan to build and preserve 200,000 affordable housing units so as to support households with a range of incomes, from the very lowest to those in the middle class, to create a diverse workforce that drives economic growth. Australian cities can learn from this case study as they are losing their geographically diverse, affordable housing, which may reduce productivity into the future. view details brief How can housing policies improve Australia's urban productivity? 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Report Making connections: housing, productivity and economic development This is a scoping study with the immediate aim of reviewing links between housing and productivity. view details
Report Housing, location and employment This is the final report for the project Housing, location and employment view details
brief How linking housing, infrastructure and transport policies can improve Australia's urban productivity There are costs to the general economy when there is a mismatch between the location of jobs, affordable housing opportunities and inadequate public transport. This Brief demonstrates that when good transport and other infrastructure connects householders to a wide range of employment opportunities, urban productivity can be enhanced. view details
brief New York: a case study in providing affordable housing to boost urban productivity New York city (USA) initiated a 10-year plan to build and preserve 200,000 affordable housing units so as to support households with a range of incomes, from the very lowest to those in the middle class, to create a diverse workforce that drives economic growth. Australian cities can learn from this case study as they are losing their geographically diverse, affordable housing, which may reduce productivity into the future. view details
brief How can housing policies improve Australia's urban productivity? Over recent decades Australia’s housing system has shown reductions in rates of affordable housing, stable tenure housing and affordable locations close to employment, all of which weaken urban productivity growth. This Brief presents policy options that can improve the qualities of Australia’s housing market, so as to improve urban productivity growth. view details
