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Joint Choice of Tenure and Dwelling Type: A Multinomial Logit Analysis for the City of Chongju

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  • Cheol-Joo Cho

    (Department of Urban and Regional Planning, Chongju University, Chongju, CB 360-764, Korea, cjcho@alpha94.chongju.ac.kr.)

Abstract

This paper explores the plausible variables that influence choices in the Chongju housing market. A joint model of tenure and dwelling type is estimated within the multinomial logit framework. The logit model of housing choice is fitted to the whole sample and to two sub-samples, which are categorised on the basis of neighbourhood quality. The empirical results do not exhibit a uniform pattern over the three sample cases. In the case of the whole sample, housing choice is influenced by the age, educational level and occupation of household head, a dummy of school-age children, and the ratio of housing price to household income. For the households locating in the high-quality neighbourhoods, the age, educational level and occupation of household head, and the housing price to income ratio appear significant. In the second sub-group, which comprises the households choosing a poor-quality neighbourhood, the age and occupation, a dummy of school-age children, and the housing price to income ratio appear to be the responsible variables. The findings suggest that the supply of housing should be diversified to meet the diverse segments of demand in the Chongju housing market. An increasing priority should be placed on the provision of rental housing, whether detached or multiple, rather than owner-occupied apartments.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:urbstu:v:34:y:1997:i:9:p:1459-1473
    DOI: 10.1080/0042098975510
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    Cited by:

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    2. Frick, Joachim R. & Grabka, Markus M., 2001. "Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 221(3), pages 285-308.
    3. Joachim R. Frick & Markus M. Grabka, 2000. "Personelle Einkommensverteilung und der Einfluß von Imputed Rent," Discussion Papers of DIW Berlin 225, DIW Berlin, German Institute for Economic Research.
    4. Sigal Kaplan & Shlomo Bekhor & Yoram Shiftan, 2011. "Development and estimation of a semi-compensatory residential choice model based on explicit choice protocols," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 51-80, August.
    5. Miki Seko & Kazuto Sumita, 2007. "Japanese Housing Tenure Choice and Welfare Implications after the Revision of the Tenant Protection Law," The Journal of Real Estate Finance and Economics, Springer, vol. 35(3), pages 357-383, October.
    6. Maria I. Marshall, 2006. "Who Chooses To Own A Manufactured Home ?," Working Papers 06-12, Purdue University, College of Agriculture, Department of Agricultural Economics.
    7. Andrejs Skaburskis, 1999. "Modelling the Choice of Tenure and Building Type," Urban Studies, Urban Studies Journal Limited, vol. 36(13), pages 2199-2215, December.
    8. Amnon Frenkel & Edward Benedit & Sigal Kaplan, 2011. "Residential choice of knowledge-workers in a 'startup metropolis': the role of amenities, workplace and lifestyle," ERSA conference papers ersa11p208, European Regional Science Association.
    9. Frick Joachim R. & Grabka Markus M., 2001. "Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung. The Impact of Imputed Rent on the Personal Distribution of Income," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 221(3), pages 285-308, June.
    10. Justin Quear & Wallace E. Tyner, 2006. "Development Of Variable Ethanol Subsidy And Comparison With The Fixed Subsidy," Working Papers 06-16, Purdue University, College of Agriculture, Department of Agricultural Economics.
    11. Xiaolu Gao & Yasushi Asami & Yanmin Zhou & Toru Ishikawa, 2013. "Preferences for Floor Plans of Medium-Sized Apartments: A Survey Analysis in Beijing, China," Housing Studies, Taylor & Francis Journals, vol. 28(3), pages 429-452, April.
    12. Hoa Nguyen, 2019. "Impact of Increasing Minimum Wage on Homeownership and Home Equity Loans," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(2), pages 209-219, May.
    13. M. Consuelo Colom & M. Cruz Molés, 2008. "Comparative Analysis of the Social, Demographic and Economic Factors that Influenced Housing Choices in Spain in 1990 and 2000," Urban Studies, Urban Studies Journal Limited, vol. 45(4), pages 917-941, April.
    14. Donggen Wang & Si-Ming Li, 2004. "Housing Preferences in a Transitional Housing System: The Case of Beijing, China," Environment and Planning A, , vol. 36(1), pages 69-87, January.
    15. Bagley, Michael N, 1999. "Incorporating Residential Choice into Travel Behavior-Land Use Interaction Research: A Conceptual Model with Methodologies for Investigating Causal Relationships," University of California Transportation Center, Working Papers qt2ws1x83f, University of California Transportation Center.
    16. Amnon Frenkel & Sigal Kaplan, 2015. "The joint choice of tenure, dwelling type, size and location: the effect of home-oriented versus culture-oriented lifestyle," Letters in Spatial and Resource Sciences, Springer, vol. 8(3), pages 233-251, November.
    17. 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.
    18. Sigal Kaplan & Yoram Shiftan & Shlomo Bekhor, 2011. "A Semi-Compensatory Residential Choice Model With Flexible Error Structure," ERSA conference papers ersa10p65, European Regional Science Association.
    19. 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).
    20. Li, Yaoyao & Qi, Yuan & Liu, Licheng & Hou, Yuchen & Fu, Shuya & Yao, Jingtao & Zhu, Daolin, 2022. "Effect of increasing the rental housing supply on house prices: Evidence from China’s large and medium-sized cities," Land Use Policy, Elsevier, vol. 123(C).

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