The impact of telecommuting on residential relocation and residential preferences: A latent class modelling approach

The advance of information and communication technologies (ICTs) has changed travellers’ appreciation of travel distance in various ways. In the context of telecommuting, ICT increasingly allows us to work from home one or more days per week. One hypothesis that has been put forward is that because ICTs reduce the frequency of commuting, it allows workers to accept longer commute distances, implying that telecommuters have a different valuation of travel distance than regular commuters and would also favour more peripheral residential locations. The question can be raised, however, whether telecommuters can be regarded as a homogeneous group with respect to their valuation of commute distance and residential preferences. To investigate the heterogeneity of commuters’ and telecommuters’ preferences, latent class discrete choice models of workers’ intended relocation probability and preferred residential environment were estimated. The results suggest that telecommuting is not a factor that can be used to identify segments with different residential preferences. However, within the group of telecommuters, two different classes can be identified, which can be characterised as being sensitive and insensitive to commute distance.