The Effect of Transport Costs on Housing-related Financial Stress in Australia

Housing-related financial stress or housing stress is usually measured on the basis of income and direct housing costs such as mortgage repayments and rents. One cost that is not included in calculations of housing stress, but which may be important, is the difference made by transport costs. This paper shows how a measure of housing stress that incorporates transport costs can give a different picture of housing stress from a measure that ignores transport costs. The result shows that, in capital cities, bringing transport costs into a housing stress measure particularly affects households with children. It is also found that the impact of transport costs is even greater outside capital cities and that access to public transport may play a role in determining the spatial pattern of housing stress and hence the impact of transport cost on housing stress.