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Tenure Choice, Housing Demand, and Residential Location

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Abstract

This paper incorporates location and tenure choice into a simultaneous equation model of housing demand. The estimation results reveal that an important asymmetry may exist between renters and homeowners in terms of their respective housing decisions. The most important finding in this paper is that for homeowners housing quality and locations are jointly determined. Equally important, the decision process for homeowners appears to be sequential in nature, with tenure choice independent of the housing demand and location decisions. However, this does not appear to be the case for renters. It may be that for tenants location and housing quality choices are more limited than for homeowners.

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  • Harold W. Elder & Leonard V. Zumpano, 1991. "Tenure Choice, Housing Demand, and Residential Location," Journal of Real Estate Research, American Real Estate Society, vol. 6(3), pages 341-356.
    • Handle: RePEc:jre:issued:v:6:n:3:1991:p:341-356
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    Cited by:

    1. 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.
    2. Manoj, M. & Verma, Ashish & Navyatha, M., 2015. "Commute travel and its effect on housing tenure choice of males and females living in the urban and rural areas of Bangalore city in India," Journal of Transport Geography, Elsevier, vol. 45(C), pages 62-69.
    3. Han, Xuehui, 2010. "Housing demand in Shanghai: A discrete choice approach," China Economic Review, Elsevier, vol. 21(2), pages 355-376, June.
    4. Orhan SANLI & Osman PEKER, 2023. "Effect of Inflation, Exchange Rate, Interest Rates and Income on House Sales: a Case of Turkiye," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(1), pages 37-60, January.
    5. Sophie Dantan & Nathalie Picard, 2016. "Effect Of Borrowing Constraints On Location Choice: Evidence From The Paris Region," Working Papers hal-01294215, HAL.
    6. Sophie Dantan & Nathalie Picard, 2019. "Borrowing constraints and location choice - Evidence from the Paris Region," THEMA Working Papers 2019-05, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    7. Binner, Amy & Day, Brett, 2015. "Exploring mortgage interest deduction reforms: An equilibrium sorting model with endogenous tenure choice," Journal of Public Economics, Elsevier, vol. 122(C), pages 40-54.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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