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Housing Affordability, Occupation and Location in Australian Cities

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Housing Affordability, Occupation and Location in Australian Cities Housing affordability, occupation and location in Australian cities and regions authored by Judith Yates, Bill Randolph and Darren Holloway for the Australian Housing and Urban Research Institute Sydney Research Centre and UNSW/UWS Research Centre March 2006 AHURI Final Report No. 91 ISSN: 1834-7223 ISBN: 1 920941 99 1 ACKNOWLEDGEMENTS This material was produced with funding from the Australian Government and the Australian States and Territories. AHURI Ltd gratefully acknowledges the financial and other support it has received from the Australian, State and Territory governments, without which this work would not have been possible. DISCLAIMER AHURI Ltd is an independent, non-political body which has supported this project as part of its programme of research into housing and urban development, which it hopes will be of value to policy-makers, researchers, industry and communities. The opinions in this publication reflect the views of the authors and do not necessarily reflect those of AHURI Ltd, its Board or its funding organisations. No responsibility is accepted by AHURI Ltd or its Board or its funders for the accuracy or omission of any statement, opinion, advice or information in this publication. AHURI FINAL REPORT SERIES AHURI Final Reports is a refereed series presenting the results of original research to a diverse readership of policy makers, researchers and practitioners. CONTENTS LIST OF FIGURES ......................................................................................................III LIST OF TABLES........................................................................................................ V EXECUTIVE SUMMARY ........................................................................................... VII 1 INTRODUCTION AND OVERVIEW .......................................................................1 1.1 Context...................................................................................................................1 1.2 Background............................................................................................................3 1.3 The key worker/essential worker literature .............................................................5 1.3.1 UK literature................................................................................................5 1.3.2 US literature................................................................................................6 1.3.3 Australian literature.....................................................................................7 1.4 Conceptual issues and methodological approach...................................................8 1.4.1 Defining occupations of interest ..................................................................8 1.4.2 Defining regions of interest .........................................................................9 1.4.3 Relating individual to household characteristics ........................................ 11 1.4.4 Determining the impact of affordability on labour market outcomes .......... 12 2 HOUSING AFFORDABILITY OUTCOMES..........................................................13 2.1 Overview.............................................................................................................. 13 2.1.1 All households .......................................................................................... 13 2.1.2 All households by household income ........................................................15 2.1.3 Working households by location................................................................16 2.1.4 Working households by tenure..................................................................17 2.1.5 Summary ..................................................................................................18 2.2 Housing affordability outcomes by occupation......................................................19 2.2.1 Housing stress by occupation at the single digit classification level...........20 2.2.2 Housing stress by occupation at the 3 digit classification level..................22 2.2.3 Household incomes of occupations in housing stress ...............................27 2.3 Housing affordability outcomes by location...........................................................29 2.3.1 Incidence of housing stress for working households .................................29 2.3.2 Income and location..................................................................................32 2.4 Affordability, occupation and location ...................................................................34 3 LABOUR MARKET OUTCOMES.........................................................................35 3.1 Introduction ..........................................................................................................35 3.2 Job deficits and surpluses ....................................................................................36 3.2.1 Sydney...................................................................................................... 38 3.2.2 Melbourne.................................................................................................43 3.2.3 Brisbane ...................................................................................................46 3.2.4 Summary ..................................................................................................49 3.3 Journey to work.................................................................................................... 49 3.3.1 Extent of commuting in 2001.....................................................................50 3.3.2 Changes in commuting between 2001 and 1996 ......................................52 3.3.3 Summary ..................................................................................................54 i 4 JOURNEY TO WORK BY OCCUPATION ...........................................................55 4.1 Introduction ..........................................................................................................55 4.2 Labour market outcomes......................................................................................55 4.2.1 Job deficits/surpluses by occupation.........................................................55 4.2.2 The spatial concentration of indicator occupations....................................57 4.3 Occupational outcomes........................................................................................59 4.3.1 Place of work and residence .....................................................................59 4.3.2 Changes between 1996 and 2001 ............................................................ 61 4.4 Journey to Work by Inner City Case Study Areas.................................................62 4.4.1 Introduction............................................................................................... 62 4.4.2 Overview of journey to work trends in Inner Sydney..................................62 4.4.3 Overview of journey to work trends in Inner Melbourne.............................64 4.4.4 Overview of journey to work trends in Brisbane City Core......................... 66 4.4.5 Summary ..................................................................................................66 5 HOUSEHOLDS WORKING IN SYDNEY AND INNER SYDNEY..........................67 5.1 Analysis by reference person in the household ....................................................68 5.1.1 Introduction............................................................................................... 68 5.1.2 Residential Location and Workplace Destination for the Case Study Groups......................................................................................................68 5.1.3 Location, Age and Housing Tenure Relationships.....................................69 5.2 Analysis by person identified with indicator occupation ........................................ 70 5.2.1 Introduction............................................................................................... 70 5.2.2 Location choices and affordability outcomes............................................. 70 5.2.3 Housing choices and housing stress by age, and tenure and income .......73 5.2.4 Household choices....................................................................................79 5.3 Summary..............................................................................................................85 6 CONCLUSIONS...................................................................................................87 REFERENCES ...........................................................................................................89 APPENDIX A: JOURNEY TO WORK DATA BY OCCUPATION .............................. 92 ii LIST OF FIGURES Figure 2.1: Working households by housing affordability outcomes ...........................19 Figure 2.2: Proportion of working households purchasing or owning..........................19 Figure 2.3: Distribution of household income of working households by occupation, 2001...........................................................................................................................22 Figure 3.1: Residential and Employment Self Containment........................................36 Figure 3.2: Sydney statistical sub-divisions ................................................................37 Figure 3.3: Change in proportions of workers living and working in each region: Sydney 1996-2001.....................................................................................................41
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