The link between infrastructure charges and housing affordability in Australia: Where is the empirical evidence?

Bryant, Lyndall & Eves, Chris (2014) The link between infrastructure charges and housing affordability in Australia: Where is the empirical evidence? Australian Planner, 51(4), pp. 307-317.

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Abstract

Developer paid charges or contributions are a commonly used infrastructure funding mechanism for local governments. However, developers claim that these costs are merely passed on to home buyers, with adverse effects to housing affordability. Despite a plethora of government reports and industry advocacy, there remains no empirical evidence in Australia to confirm or quantify this passing on effect to home buyers and hence no data for which governments to base policy decision upon. This paper examines the question of who really pays for urban infrastructure and the impact of infrastructure charges on housing affordability. It presents the findings of a number of international empirical studies that provide evidence that infrastructure charges do increase house prices. Based on international findings, and in the absence of any Australian research, then these findings suggest that if the international findings are transferable, then there is empirical evidence to support the proposition that developer paid infrastructure charges are a significant contributor to increasing house prices.

Impact and interest:

2 citations in Scopus
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ID Code: 67109
Item Type: Journal Article
Refereed: Yes
Additional Information: Published online: 24 Jan 2014
Keywords: Infrastructure charges, Housing Affordability, Developer contributions, Impact Fees
DOI: 10.1080/07293682.2013.877509
ISSN: 0729-3682
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > URBAN AND REGIONAL PLANNING (120500) > Urban Analysis and Development (120507)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Deposited On: 09 Feb 2014 22:32
Last Modified: 17 Jun 2015 23:46

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