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Household Demand for Housing in Kenya

Author

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  • Muthoka, Sila

Abstract

Previous studies have established that demand pattern for housing identifies with that of a necessary good. The nature of housing goods consumed is highly heterogeneous in dimensions like ownership, size, location and tenure type. In this study I model the probability of household tenure types in Kenya using Household Budget Survey data. Using a Multinomial Logit Model (MNLM) formulation three tenure, household size and age of the household head emerge as significant predictors of household housing choices. Based on the results, the government and firms can rely on household size and age of the household head to approximate demand for housing services in the various tenure types. Furthermore, the ability to interpolate these variables based on occasional population surveys makes it easier to design mechanisms of matching demand and supply for housing services.

Suggested Citation

  • Muthoka, Sila, 2015. "Household Demand for Housing in Kenya," MPRA Paper 65469, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:65469
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    References listed on IDEAS

    as
    1. Philippe Bracke, 2013. "House Prices and Rents: Micro Evidence from a Matched Dataset in Central London_x0003_," ERSA conference papers ersa13p112, European Regional Science Association.
    2. Philippe Bracke, 2015. "House Prices and Rents: Microevidence from a Matched Data Set in Central London," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 43(2), pages 403-431, June.
    3. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    4. Eichholtz, Piet & Lindenthal, Thies, 2014. "Demographics, human capital, and the demand for housing," Journal of Housing Economics, Elsevier, vol. 26(C), pages 19-32.
    5. Ermisch, J. F. & Findlay, J. & Gibb, K., 1996. "The Price Elasticity of Housing Demand in Britain: Issues of Sample Selection," Journal of Housing Economics, Elsevier, vol. 5(1), pages 64-86, March.
    6. Henderson, J Vernon & Ioannides, Yannis M, 1983. "A Model of Housing Tenure Choice," American Economic Review, American Economic Association, vol. 73(1), pages 98-113, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    housing; demand for housing; tenure; multinomial logit; hedonic regression;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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