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An Analysis of Preferences in Housing Demand by Means of a Multicriteria Methodology (AHP). A More Sustainable Approach

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  • Roberto Cervelló-Royo

    (Faculty of Business Administration and Management, Economics and Social Sciences Department, Universitat Politècnica de València, Camino de Vera s/n, 46022 Valencia, Spain)

  • Marina Segura

    (Financial Economics and Statistics Department, Campus de Somosaguas, Universidad Complutense de Madrid, 28223 Madrid, Spain)

  • Regina García-Pérez

    (Faculty of Business Administration and Management, Economics and Social Sciences Department, Universitat Politècnica de València, Camino de Vera s/n, 46022 Valencia, Spain)

  • Baldomero Segura-García del Río

    (Faculty of Business Administration and Management, Economics and Social Sciences Department, Universitat Politècnica de València, Camino de Vera s/n, 46022 Valencia, Spain)

Abstract

This paper examines key aspects of the behavior of housing demand from a sustainable standpoint. Most studies have mainly focused on housing supply, looking at quantitative predictions without considering the qualitative relationship found between housing values and housing demand on a sustainable and microeconomic scale. We used a multicriteria decision methodology (analytic hierarchy process—AHP) for the analysis of preferences in demand, based on the theory of multi-attribute utility of housing, to determine the relative importance of each characteristic of housing and its influence on the decision-making process. For this purpose, we carried out the study over three main groups of stakeholders in the housing market: real estate surveyors, real estate agents, and housing buyers (the latter representing the housing demand). Results show that although there might be some slight discrepancies among the three groups in the decision-making process and the weighting of housing attributes, the three groups agree in most of the process, especially when defining the criteria and the importance that each criterion has on the process of valuation. This study provides important managerial and sustainable implications for the real estate market related to urban public policy, as we highlight which criteria are most preferred.

Suggested Citation

  • Roberto Cervelló-Royo & Marina Segura & Regina García-Pérez & Baldomero Segura-García del Río, 2021. "An Analysis of Preferences in Housing Demand by Means of a Multicriteria Methodology (AHP). A More Sustainable Approach," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:7550-:d:589413
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    References listed on IDEAS

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