Housing Affordability and Households Finance Well-being

This research investigates the impact of housing affordability on household financial well-being. Using a transaction data and investment data from an investment Fintech company in Australia, the study examines how housing affordability affect household investment preference, savings, debt, and consumption behavior. The findings reveal that decreased housing affordability significantly reduces household consumption and the households prefer to reduce their debt, while also negatively impacting investment in risk assets. Employing linear regression and DID analysis, the research provides empirical evidence for policymakers to develop strategies to reduce housing burdens and enhance financial stability.