residential choice household level analysis and hedonic modelling
Download
Skip this Video
Download Presentation
Residential Choice: Household-Level Analysis and Hedonic Modelling

Loading in 2 Seconds...

play fullscreen
1 / 27

Residential Choice: Household-Level Analysis and Hedonic Modelling - PowerPoint PPT Presentation


  • 76 Views
  • Uploaded on

Residential Choice: Household-Level Analysis and Hedonic Modelling. Yan Kestens, Marius Thériault & François Des Rosiers Université Laval MCRI Student Caucus “OUR FUTURE DIRECTIONS: UNDERSTANDING INDIVIDUAL AND SOCIAL PROCESSES IN URBAN CANADA” ITS Centre – University of Toronto

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Residential Choice: Household-Level Analysis and Hedonic Modelling' - jonco


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
residential choice household level analysis and hedonic modelling

Residential Choice: Household-Level Analysis and Hedonic Modelling

Yan Kestens, Marius Thériault & François Des Rosiers

Université Laval

MCRI Student Caucus

“OUR FUTURE DIRECTIONS: UNDERSTANDING INDIVIDUAL AND SOCIAL

PROCESSES IN URBAN CANADA”

ITS Centre – University of Toronto

13-14 September 2003

residential choice hedonic modelling
Residential Choice & Hedonic Modelling
  • Context of the study
  • Hedonic modelling widely used for analysing property prices
      • Considering various geographical externalities (schools, high-voltage powerlines, vegetation, landscaping)
      • Spatial-sensitive methods measuring the "drift" in the coefficients
      • Spatial Expansion Method (Casetti, 1972)
      • Geographically Weighted Regression (Fotheringham 1997)
  • Absence of spatial-sensitive modelling at the household level
      • could determine if the impact of an amenity is homogenous among the sample or varies with the context (household profile)
residential choice hedonic modelling1
Residential Choice & Hedonic Modelling
  • Objectives
  • Gather household-level data for modelling purposes (11,000 transactions)
  • Obtain information about the household profile (age, income, educational attainment, previous tenure status…)
  • Obtain information about the choice criteria and the motivations for moving
      • Reasons for moving
      • Neighborhood choice criteria
      • Property choice criteria
residential choice hedonic modelling2
Residential Choice & Hedonic Modelling

Databank & Modelling procedure

Phone survey carried out between 2000 and 2003, single-family property buyers who bought their houses between 1993-2001 (mainly 1993-1996)

  • 2521 answered calls, 1134 acceptations (45%), 1347 refuses (55%), 774 complete answers (…including income)
  • Moving motivations
  • Neighborhood Choice (location)
  • Property Choice
  • «Free » survey, no proposed answers, unlimited number of responses
residential choice hedonic modelling3
Residential Choice & Hedonic Modelling
  • Databank & Modelling procedure
  • Why do families move and what do they choose ?
  • Improve our understanding of residential choice…
  • Frequency analysis and correspondence analysis of responses (place-proximity-space (Filion 1999) and place-identity (Proshansky, 1978; Feldman, 1990) conceptual frameworks)
    • … by modelling the odds-ratio of mentioning a criterion depending on the household profile and location
  • Series of logistic regressions, modelling the propensity to mention a criteria depending on the household profile (previous tenure status (first-time vs former owner), age, household type, educational attainment, income)
residential choice hedonic modelling4
Residential Choice & Hedonic Modelling

Databank & Modelling procedure

2) Residential hedonic modelling: Are implicit prices homogeneous considering household profiles?

According to Starret (1981):

- the capitalization of an attribute is complete if

(1) there is enough variation within the variable – e.g. in order to measure the effect of proximity to power lines, it is important there are also people living at such distance to prevent an effect on house prices

(2) the residents\' preferences are homogenous.

“Whereas the first condition can easily be controlled, the second has been the object of little research. If the preferences are heterogeneous, capitalization is only partial” (Tyrvainen, 1997, p.220)

..or capitalization is complete but heterogeneous depending on preferences…

residential choice hedonic modelling5
Residential Choice & Hedonic Modelling

Databank & Modelling procedure

2) Residential hedonic modelling: Are implicit prices homogeneous considering household profiles?

  • Spatial-sensitive hedonic modelling with introduction of household profile data into the hedonic function
  • Casetti-type expansion variables: measures the variability of a previously defined "fixed" coefficients depending on the context (household profile)
  • Geographically Weighted Regressions (Fotheringham, 1997 & 2002)
  • Local Indicators of Spatial Association (LISA)
residential choice hedonic modelling6
Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

Moving motivations

residential choice hedonic modelling7
Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

Moving motivations

70%

residential choice hedonic modelling8
Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

Property and Neigborhood Choice Criteria

residential choice hedonic modelling9
Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

Property and Neigborhood Choice Criteria

  • Correspondence analysis
  • (similar to Principal Component Analysis, but applied to binary variables)
slide14

Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

Logistic regression example: Likelihood to cite the school as a neighbourhood choice criteria

A household with children is 4.625 times more likely to cite the school as a neighborhood criteria

slide15

Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

Logistic regression example: Likelihood to cite the school as a neighbourhood choice criteria

A household with children is 4.625 times more likely to cite the school as a neighborhood criteria

New oweners are 1/0.646=1.55 times less likely to cite the school as a neighborhood criteria

residential choice hedonic modelling10
Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

Moving Motivations: getting closer to a school

residential choice hedonic modelling11
Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

Neighborhood Choice: Aesthetic criteria

residential choice hedonic modelling12
Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

residential choice hedonic modelling13
Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

residential choice hedonic modelling14
Residential Choice & Hedonic Modelling

Why do families move and what do they choose?

residential choice hedonic modelling15
Residential Choice & Hedonic Modelling

Implicit Prices – Hedonic Modelling and Household Profiles

Some findings…

Accessibility – location rent: Significant interaction between car-time to CBD and household income

residential choice hedonic modelling16
Residential Choice & Hedonic Modelling

Implicit Prices – Hedonic Modelling and Household Profiles

Some findings…

The percentage of university degree holders in the Census tract has a global positive effect on the property value, each additional 10% adding 4.41% to the property value

residential choice hedonic modelling17
Residential Choice & Hedonic Modelling

Implicit Prices – Household Profiles

Some findings…

Additionally, the interaction with the household-level binary variable “Holding a university degree” proved significant, with a positive premium of 1.8%.

 high-educated people are ready to pay a premium for living next to people with similar educational attainment

residential choice hedonic modelling18
Residential Choice & Hedonic Modelling

Implicit Prices – Household Profiles

The introduction of household-level data into the hedonic function had a very positive effect on Local Spatial Autocorrelation

Final model: only 24 significant zG*i statistics (among 761, that is, less than 5%)

residential choice hedonic modelling19
Residential Choice & Hedonic Modelling

Conclusions

Detailed household surveys betters our understanding of the residential choice process

Household-level data introduced within the hedonic framework improves explanation power while diminishing local spatial autocorrelation

Furthers the understanding of the spatial structure of the residential market, that is, the heterogeneity of the implicit prices

residential choice hedonic modelling20
Residential Choice & Hedonic Modelling

Conclusions

Further research: analysing the complex intertwine between residential, work and family career with individual data (space-time dynamics)

  • Linkages between market and people
    • - from individual behaviour to global processes (scale)
    • - policies, planning
residential choice household level analysis and hedonic modelling1

Residential Choice: Household-Level Analysis and Hedonic Modelling

Yan Kestens, Marius Thériault & François Des Rosiers

Université Laval

MCRI Student Caucus

“OUR FUTURE DIRECTIONS: UNDERSTANDING INDIVIDUAL AND SOCIAL

PROCESSES IN URBAN CANADA”

ITS Centre – University of Toronto

13-14 September 2003

ad