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The Demand for Housing Additions: An Empirical Analysis

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  • A. L. Ziegert

Abstract

Little is known of a household's decision to make a housing addition despite the large and growing size of these expenditures. This paper examines this decision in a two‐step empirical process: first, those factors that influence the probability of a housing addition are determined, and second, the value of the addition made is analyzed. Preliminary results indicate that unmet housing consumption needs, but not the investment potential of housing additions, have a significant impact on both the probability of an addition and the value of an addition made. Furthermore, ceteris paribus, non‐white households have a greater probability of making a housing addition, and on average, spend more on housing additions than do white households.

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  • A. L. Ziegert, 1988. "The Demand for Housing Additions: An Empirical Analysis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 479-496, December.
    • Handle: RePEc:bla:reesec:v:16:y:1988:i:4:p:479-496
    DOI: 10.1111/1540-6229.00469
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    Cited by:

    1. Guy Garrod & Ken Willis & A. Graham Tipple, 1995. "A Two-stage Econometric Analysis of the Housing Extension Decision in Kumasi, Ghana," Urban Studies, Urban Studies Journal Limited, vol. 32(6), pages 953-970, June.
    2. Wen-Chieh Wu & Yu-Chun Ma & Steven C. Bourassa, 2018. "Folk Customs and Home Improvement Decisions," International Real Estate Review, Global Social Science Institute, vol. 21(3), pages 317-341.
    3. Harding, John P. & Miceli, Thomas J. & Sirmans, C. F., 2000. "Deficiency Judgments and Borrower Maintenance: Theory and Evidence," Journal of Housing Economics, Elsevier, vol. 9(4), pages 267-285, December.
    4. James A. Gosling & Geoffrey Keogh & Michael J. Stabler, 1993. "House Extensions and Housing Market Adjustment: A Case-study of Wokingham," Urban Studies, Urban Studies Journal Limited, vol. 30(9), pages 1561-1576, November.
    5. A. Graham Tipple & Gillian A. Masters & Guy D. Garrod, 2000. "An Assessment of the Decision to Extend Government-built Houses in Developing Countries," Urban Studies, Urban Studies Journal Limited, vol. 37(9), pages 1605-1617, August.
    6. Ishikawa, Noriko & Fukushige, Mototsugu, 2010. "Households' attitudes toward earthquake protection: An empirical analysis of the impact of fiscal support in Japan," Journal of Housing Economics, Elsevier, vol. 19(1), pages 51-65, March.
    7. Munneke, Henry J. & Womack, Kiplan S., 2015. "Neighborhood renewal: The decision to renovate or tear down," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 99-115.

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