Real house prices rise in Australia amid growing concern of an impending correction. This paper explains why the household formation rate has risen with strong population growth due to higher net immigration and average household size levelling due to population ageing. An intertemporal model is...

Real house prices and household debt have risen in Australia amid growing concern of risks to the economy from a market correction. An intertemporal model of the housing market with household retirement and debt explains three observations relating to the post-GFC housing boom. First, people are...