IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v88y2020ics0966692320309431.html
   My bibliography  Save this article

Understanding differences in residential location preferences between ownership and renting: A case study of London

Author

Listed:
  • Haque, Md Bashirul
  • Choudhury, Charisma
  • Hess, Stephane

Abstract

This study aims to investigate the similarities and differences between residential location choices of owners and renters. The models are estimated for commuter households living in owned or privately rented dwellings in the Greater London Area. The London Household Survey Data, Ward Atlas Data and the London Transport Studies Model outputs are used in this regard. Model parameters are estimated using an error components specification of the mixed logit model to capture differences in error variance. Willingness to Pay (WTP) and elasticity analyses are also performed for interpretation of the estimated model parameters and quantifying the differences between the two groups. The results indicate that while some common factors are affecting the choices of owners and renters, there are significant differences in response to several factors such as public transport accessibility (for ‘car-owning’ households) and percentage of detached houses in the area. Accounting for preference heterogeneity between the sub-groups is expected to lead to better planning and investment decisions.

Suggested Citation

  • Haque, Md Bashirul & Choudhury, Charisma & Hess, Stephane, 2020. "Understanding differences in residential location preferences between ownership and renting: A case study of London," Journal of Transport Geography, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:jotrge:v:88:y:2020:i:c:s0966692320309431
    DOI: 10.1016/j.jtrangeo.2020.102866
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692320309431
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2020.102866?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Farber, Steven & Li, Xiao, 2013. "Urban sprawl and social interaction potential: an empirical analysis of large metropolitan regions in the United States," Journal of Transport Geography, Elsevier, vol. 31(C), pages 267-277.
    2. Reid Ewing & Robert Cervero, 2010. "Travel and the Built Environment," Journal of the American Planning Association, Taylor & Francis Journals, vol. 76(3), pages 265-294.
    3. Victor Couture & Jessie Handbury, 2017. "Urban Revival in America, 2000 to 2010," NBER Working Papers 24084, National Bureau of Economic Research, Inc.
    4. Yongsung Lee & Bumsoo Lee & Md Tanvir Hossain Shubho, 2019. "Urban revival by Millennials? Intraurban net migration patterns of young adults, 1980–2010," Journal of Regional Science, Wiley Blackwell, vol. 59(3), pages 538-566, June.
    5. Hess, Stephane & Train, Kenneth, 2017. "Correlation and scale in mixed logit models," Journal of choice modelling, Elsevier, vol. 23(C), pages 1-8.
    6. Brownstone, David & Bunch, David S. & Train, Kenneth, 2000. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 34(5), pages 315-338, June.
    7. Ho, Chinh Q. & Hensher, David A. & Ellison, Richard, 2017. "Endogenous treatment of residential location choices in transport and land use models: Introducing the MetroScan framework," Journal of Transport Geography, Elsevier, vol. 64(C), pages 120-131.
    8. Brian Lee & Paul Waddell, 2010. "Residential mobility and location choice: a nested logit model with sampling of alternatives," Transportation, Springer, vol. 37(4), pages 587-601, July.
    9. Cheol-Joo Cho, 1997. "Joint Choice of Tenure and Dwelling Type: A Multinomial Logit Analysis for the City of Chongju," Urban Studies, Urban Studies Journal Limited, vol. 34(9), pages 1459-1473, August.
    10. Farooq, Bilal & Miller, Eric J., 2012. "Towards integrated land use and transportation: A dynamic disequilibrium based microsimulation framework for built space markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(7), pages 1030-1053.
    11. Hensher,David A. & Rose,John M. & Greene,William H., 2015. "Applied Choice Analysis," Cambridge Books, Cambridge University Press, number 9781107465923, November.
    12. Daly, Andrew & Hess, Stephane & de Jong, Gerard, 2012. "Calculating errors for measures derived from choice modelling estimates," Transportation Research Part B: Methodological, Elsevier, vol. 46(2), pages 333-341.
    13. Abdul Pinjari & Ram Pendyala & Chandra Bhat & Paul Waddell, 2011. "Modeling the choice continuum: an integrated model of residential location, auto ownership, bicycle ownership, and commute tour mode choice decisions," Transportation, Springer, vol. 38(6), pages 933-958, November.
    14. Brownstone, David & Bunch, David S. & Train, Kenneth, 2000. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 34(5), pages 315-338, June.
    15. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, November.
    16. Judith Yates & Daniel F. Mackay, 2006. "Discrete Choice Modelling of Urban Housing Markets: A Critical Review and an Application," Urban Studies, Urban Studies Journal Limited, vol. 43(3), pages 559-581, March.
    17. Chris Hamnett & Tim Butler, 2010. "The Changing Ethnic Structure of Housing Tenures in London, 1991—2001," Urban Studies, Urban Studies Journal Limited, vol. 47(1), pages 55-74, January.
    18. Juan Antonio Carrasco & Juan de Dios Ortúzar, 2002. "Review and assessment of the nested logit model," Transport Reviews, Taylor & Francis Journals, vol. 22(2), pages 197-218, January.
    19. Tim Butler & Chris Hamnett & Mark Ramsden, 2008. "Inward and Upward: Marking Out Social Class Change in London, 1981—2001," Urban Studies, Urban Studies Journal Limited, vol. 45(1), pages 67-88, January.
    20. Rashidi, Taha Hossein & Auld, Joshua & Mohammadian, Abolfazl (Kouros), 2012. "A behavioral housing search model: Two-stage hazard-based and multinomial logit approach to choice-set formation and location selection," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(7), pages 1097-1107.
    21. Joan Walker & Jieping Li, 2007. "Latent lifestyle preferences and household location decisions," Journal of Geographical Systems, Springer, vol. 9(1), pages 77-101, April.
    22. Felix Haifeng Liao & Steven Farber & Reid Ewing, 2015. "Compact development and preference heterogeneity in residential location choice behaviour: A latent class analysis," Urban Studies, Urban Studies Journal Limited, vol. 52(2), pages 314-337, February.
    23. Sener, Ipek N. & Pendyala, Ram M. & Bhat, Chandra R., 2011. "Accommodating spatial correlation across choice alternatives in discrete choice models: an application to modeling residential location choice behavior," Journal of Transport Geography, Elsevier, vol. 19(2), pages 294-303.
    24. Bhat, Chandra R. & Guo, Jessica, 2004. "A mixed spatially correlated logit model: formulation and application to residential choice modeling," Transportation Research Part B: Methodological, Elsevier, vol. 38(2), pages 147-168, February.
    25. Ho, Chinh Q. & Mulley, Corinne, 2013. "Multiple purposes at single destination: A key to a better understanding of the relationship between tour complexity and mode choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 206-219.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bjørnson Lunke, Erik, 2023. "Accessibility in a multi-ethnic city: Residential trade-offs among first-time parents," Journal of Transport Geography, Elsevier, vol. 107(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bhat, Chandra R., 2015. "A comprehensive dwelling unit choice model accommodating psychological constructs within a search strategy for consideration set formation," Transportation Research Part B: Methodological, Elsevier, vol. 79(C), pages 161-188.
    2. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    3. Rezaei, Ali & Patterson, Zachary, 2018. "Preference stability in household location choice: Using cross-sectional data from three censuses," Research in Transportation Economics, Elsevier, vol. 67(C), pages 44-53.
    4. Schirmer, Patrick & van Eggermond, Michael & Axhausen, Kay, 2014. "The role of location in residential location choice models: a review of literature," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 7(2), pages 3-21.
    5. Jia Guo & Tao Feng & Harry J. P. Timmermans, 2020. "Modeling co-dependent choice of workplace, residence and commuting mode using an error component mixed logit model," Transportation, Springer, vol. 47(2), pages 911-933, April.
    6. Ibeas, Ángel & Cordera, Ruben & dell’Olio, Luigi & Coppola, Pierluigi, 2013. "Modelling the spatial interactions between workplace and residential location," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 110-122.
    7. Robbennolt, Dale & Haddad, Angela J. & Mondal, Aupal & Bhat, Chandra R., 2024. "Housing choice in an evolving remote work landscape," Transportation Research Part A: Policy and Practice, Elsevier, vol. 190(C).
    8. Kim, Sung Hoo & Mokhtarian, Patricia L., 2023. "Finite mixture (or latent class) modeling in transportation: Trends, usage, potential, and future directions," Transportation Research Part B: Methodological, Elsevier, vol. 172(C), pages 134-173.
    9. Schmid, Basil & Becker, Felix & Axhausen, Kay W. & Widmer, Paul & Stein, Petra, 2023. "A simultaneous model of residential location, mobility tool ownership and mode choice using latent variables," Transportation Research Part A: Policy and Practice, Elsevier, vol. 178(C).
    10. Haghani, Milad & Sarvi, Majid & Shahhoseini, Zahra, 2015. "Accommodating taste heterogeneity and desired substitution pattern in exit choices of pedestrian crowd evacuees using a mixed nested logit model," Journal of choice modelling, Elsevier, vol. 16(C), pages 58-68.
    11. Kim, Sung Hoo & Mokhtarian, Patricia L., 2018. "Taste heterogeneity as an alternative form of endogeneity bias: Investigating the attitude-moderated effects of built environment and socio-demographics on vehicle ownership using latent class modelin," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 130-150.
    12. John C. Whitehead & Daniel K. Lew, 2020. "Estimating recreation benefits through joint estimation of revealed and stated preference discrete choice data," Empirical Economics, Springer, vol. 58(4), pages 2009-2029, April.
    13. Sebastian Scheuer & Dagmar Haase & Annegret Haase & Nadja Kabisch & Manuel Wolff & Nina Schwarz & Katrin Großmann, 2020. "Combining tacit knowledge elicitation with the SilverKnETs tool and random forests – The example of residential housing choices in Leipzig," Environment and Planning B, , vol. 47(3), pages 400-416, March.
    14. Buckell, John & Hess, Stephane, 2019. "Stubbing out hypothetical bias: improving tobacco market predictions by combining stated and revealed preference data," Journal of Health Economics, Elsevier, vol. 65(C), pages 93-102.
    15. Stefano Mainardi, 2021. "Preference heterogeneity, neighbourhood effects and basic services: logit kernel models for farmers’ climate adaptation in Ethiopia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 6869-6912, May.
    16. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    17. Felix Haifeng Liao & Steven Farber & Reid Ewing, 2015. "Compact development and preference heterogeneity in residential location choice behaviour: A latent class analysis," Urban Studies, Urban Studies Journal Limited, vol. 52(2), pages 314-337, February.
    18. Fosgerau, Mogens & Bierlaire, Michel, 2007. "A practical test for the choice of mixing distribution in discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 41(7), pages 784-794, August.
    19. Paleti, Rajesh, 2018. "Generalized multinomial probit Model: Accommodating constrained random parameters," Transportation Research Part B: Methodological, Elsevier, vol. 118(C), pages 248-262.
    20. Frick, Bernd & Barros, Carlos Pestana & Prinz, Joachim, 2010. "Analysing head coach dismissals in the German "Bundesliga" with a mixed logit approach," European Journal of Operational Research, Elsevier, vol. 200(1), pages 151-159, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jotrge:v:88:y:2020:i:c:s0966692320309431. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.