Two Countries, Sixteen Cities, Five Thousand Kilometres: How Many Housing Markets?

This paper examines whether the major cities in Australasia make up a single housing market. If there is a single housing market across both countries, then Kiwi and Aussie house prices are primarily being driven by the same forces, rather than by local factors. In addition, a single housing market would imply that macroeconomic policies in the two countries are either run on similar lines or are incapable of independently controlling real house prices, despite both countries running independent monetary and fiscal policies.