The Reserve Bank of Australia (RBA) has released an empirical research paper, which examines the tendency of Aussie home owners to leverage property price increases (housing equity) into the purchase of new cars. Not surprisingly, the RBA finds a strong correlation, particularly among lower income groups:
Our estimation period is aligned with the 2006 and 2011 Census of Population and Housing (the Census), allowing us to include a rich set of postcode-level control variables, including income,the unemployment rate, housing tenure, usual monthly mortgage repayments, and the level of education…
