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A Micro-Market Analysis of Tenure Choice Using the Logit Model

Empirical studies on housing tenure choice have generally uncovered a multiplicity of factors that influence households in their decision to own using mostly national aggregate or cross-metropolitan data that often obscure intrametropolitan influences. In this aper we focus on these localized influences by investigating micro-locational and occupation-specific influences on the housing tenure choice behavior of college professors in the Washington, D.C. metropolitan area. Our logit analysis of this behavior shows that employment-related and spatial forces exert a strong influence on their decision. We also found that the explanatory power of the micro-location variable incorporates some income effect.

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Article provided by American Real Estate Society in its journal Journal of Real Estate Research.

Volume (Year): 6 (1991)
Issue (Month): 3 ()
Pages: 327-340

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Handle: RePEc:jre:issued:v:6:n:3:1991:p:327-340
Contact details of provider: Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
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Order Information: Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
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  1. Lawrence D. Jones, 1989. "Current Wealth and Tenure Choice," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(1), pages 17-40.
  2. Keith Ray Ihlanfeldt, 1980. "An Intertemporal Empirical Analysis of the Renter's Decision to Purchase a Home," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 8(2), pages 180-197.
  3. Eilbott, Peter & Binkowski, Edward S., 1985. "The determinants of SMSA homeownership rates," Journal of Urban Economics, Elsevier, vol. 17(3), pages 293-304, May.
  4. Peter Linneman & Susan Wachter, 1989. "The Impacts of Borrowing Constraints on Homeownership," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(4), pages 389-402.
  5. Zorn, Peter M., 1988. "An analysis of household mobility and tenure choice: An empirical study of Korea," Journal of Urban Economics, Elsevier, vol. 24(2), pages 113-128, September.
  6. George Fallis, 1983. "Housing Tenure in a Model of Consumer Choice: A Simple Diagrammatic Analysis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 11(1), pages 30-44.
  7. Krumm, Ronald, 1987. "Intertemporal tenure choices," Journal of Urban Economics, Elsevier, vol. 22(3), pages 263-275, November.
  8. Kent, Richard J., 1984. "Housing tenure choice: Evidence from time series," Journal of Urban Economics, Elsevier, vol. 15(2), pages 195-209, March.
  9. 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.
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