Liquidity Shocks, Homeownership, and Income Inequality: Impact of Early Pension Withdrawals and Reduced Deposit

Fuente: arXiv
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Autori principali: Hanbali, Hamza, Khemka, Gaurav, Warnakulasooriya, Himasha
Natura: Preprint
Pubblicazione: 2025
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author Hanbali, Hamza
Khemka, Gaurav
Warnakulasooriya, Himasha
author_facet Hanbali, Hamza
Khemka, Gaurav
Warnakulasooriya, Himasha
contents The paper analyzes two government policies affecting housing demand: early withdrawal from pension savings (EW), and reduction of loan deposit (RD). A model incorporating demand feedback on housing prices using Australian data shows both policies raise prices in the short run. RD delays or prevents access for low-income households, particularly in supply-constrained markets. EW improves accessibility across groups and is most efficient when full withdrawal is permitted, but can reduce retirement security if pension grows faster than property prices. The results also indicate that unequal outcomes stem not from price surges themselves but from pre-existing market disparities.
format Preprint
id arxiv_https___arxiv_org_abs_2511_01133
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Liquidity Shocks, Homeownership, and Income Inequality: Impact of Early Pension Withdrawals and Reduced Deposit
Hanbali, Hamza
Khemka, Gaurav
Warnakulasooriya, Himasha
General Economics
Economics
The paper analyzes two government policies affecting housing demand: early withdrawal from pension savings (EW), and reduction of loan deposit (RD). A model incorporating demand feedback on housing prices using Australian data shows both policies raise prices in the short run. RD delays or prevents access for low-income households, particularly in supply-constrained markets. EW improves accessibility across groups and is most efficient when full withdrawal is permitted, but can reduce retirement security if pension grows faster than property prices. The results also indicate that unequal outcomes stem not from price surges themselves but from pre-existing market disparities.
title Liquidity Shocks, Homeownership, and Income Inequality: Impact of Early Pension Withdrawals and Reduced Deposit
topic General Economics
Economics
url https://arxiv.org/abs/2511.01133