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Lifecycle Stages and Residential Location Choice in the Presence of Latent Preference Heterogeneity

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  • Brett Smith
  • Doina Olaru

Abstract

The choice of residential locations is affected by both dwelling and location characteristics. Preferences for these characteristics vary with each household's requirements, traditionally attributed to the household's lifecycle stage. With a cross-sectional study that identifies lifecycle stages according to household structure, this paper offers an investigation of residential location and shows that not all components of preference heterogeneity can be accounted for by household structure. Latent class choice models examine household segments according to lifestyle preferences. The results reveal the degree of association between identified household lifecycle segments and estimated lifestyle latent classes. The composition of the latent structure differs for each lifecycle segment; income and the age of the head of household strongly affect housing preferences, but do not lead to the same latent class structure for households at different lifecycle stages.

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  • Brett Smith & Doina Olaru, 2013. "Lifecycle Stages and Residential Location Choice in the Presence of Latent Preference Heterogeneity," Environment and Planning A, , vol. 45(10), pages 2495-2514, October.
    • Handle: RePEc:sae:envira:v:45:y:2013:i:10:p:2495-2514
    DOI: 10.1068/a45490
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    References listed on IDEAS

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    Cited by:

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    2. Carlo Giacomo Prato & Katrín Halldórsdóttir & Otto Anker Nielsen, 2017. "Latent lifestyle and mode choice decisions when travelling short distances," Transportation, Springer, vol. 44(6), pages 1343-1363, November.
    3. Zhongming Lu & Frank Southworth & John Crittenden & Ellen Dunhum-Jones, 2015. "Market potential for smart growth neighbourhoods in the USA: A latent class analysis on heterogeneous preference and choice," Urban Studies, Urban Studies Journal Limited, vol. 52(16), pages 3001-3017, December.
    4. Yunxi Bai & Jusheng Song & Shanshan Wu & Wei Wang & Jacqueline T. Y. Lo & S. M. Lo, 2020. "Comparing the Impacts of Location Attributes on Residents’ Preferences and Residential Values in Compact Cities: A Case Study of Hong Kong," Sustainability, MDPI, vol. 12(12), pages 1-23, June.
    5. León, Carmelo J. & Hernández-Alemán, Anastasia & Fernández-Hernández, Carlos & Araña, Jorge E., 2023. "Are rural residents willing to trade-off higher noise for lower air pollution? Evidence from revealed preferences," Ecological Economics, Elsevier, vol. 207(C).
    6. Theresa Kotulla & Jon Martin Denstadli & Are Oust & Elisabeth Beusker, 2019. "What Does It Take to Make the Compact City Liveable for Wider Groups? Identifying Key Neighbourhood and Dwelling Features," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    7. Felix Haifeng Liao & Steven Farber & Reid Ewing, 2015. "Compact development and preference heterogeneity in residential location choice behaviour: A latent class analysis," Urban Studies, Urban Studies Journal Limited, vol. 52(2), pages 314-337, February.
    8. Scheiner, Joachim, 2018. "Transport costs seen through the lens of residential self-selection and mobility biographies," Transport Policy, Elsevier, vol. 65(C), pages 126-136.
    9. Sander van Cranenburgh & Francisco Garrido-Valenzuela, 2023. "Computer vision-enriched discrete choice models, with an application to residential location choice," Papers 2308.08276, arXiv.org.
    10. Tomás Cox & Ricardo Hurtubia, 2022. "Compact development and preferences for social mixing in location choices: Results from revealed preferences in Santiago, Chile," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 246-269, January.
    11. Ardeshiri, Ali & Vij, Akshay, 2019. "Lifestyles, residential location, and transport mode use: A hierarchical latent class choice model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 342-359.
    12. Jiang, Wen & Feng, Tao & Timmermans, Harry J.P., 2020. "Latent class path model of intention to move house," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).

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