Credit constraints have small impact on housing market – paper

RBA economist revisits the effects of down payments on housing prices

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Housing prices go up a little when down payment requirements are relaxed, but the response is probably not enough to drive house price booms, an economist at the Reserve Bank of Australia argues.

In a research paper, Tom Cusbert, research manager at the Reserve Bank of Australia, re-examines the findings of a survey conducted in the US in 2021, to assess the effects of credit constraints on housing prices.

In the survey, researchers asked people how much they would be willing to pay for a home

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