The increasing importance of social sustainability - the contribution of social area analysis in housing market analysis

Abstract

An understanding of residential housing market drivers, particularly in relation to economic variations in house prices both within and between suburbs, continues to present challenges for researchers and stakeholders. Most urban cities contain precincts with high or low house values regardless of traditional price characteristics such as distance to the city centre, location of transport or topography. Exactly why these variations in suburb values occur is not always clear, although local residents are often able to easily identify differences between the status of each suburb which affect social sustainability, especially when one area is clearly perceived as superior to another. An understanding of reasons behind varying levels of purchaser demand has always been difficult to fully encapsulate in housing studies, even though clear links have been observed between housing affordability and the type of inhabitant that would live in a particular area. Economic indicators can not always observe the degree of purchaser and vendor willingness in the residential property market; additional consideration must also be given to characteristics of individual buyers and sellers within the marketplace. This research draws the disciplines of demography and housing research closer together and looks to social indicators for an insight into the level of house prices. To establish this link, a two-stage process was adopted based on an Australian housing market where social area analysis initially identifies the characteristics of suburbs within an urban area. This research examined variations in suburb values resulting in a clearer understanding of the relationship between demographic variables and house prices. While acknowledging the overall level of house values is influenced by external economic and political factors, differences between suburb values can be partly explained by demographic variables.