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Demand for Housing Attributes in Developing Countries: A Study of Pakistan

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  • Hafiz A. Pasha

    (Institute of Business Administration, University of Karachi, Karachi-75270, Pakistan)

  • Mohammad S. Butt

    (Applied Economics Research Centre, University of Karachi, Karachi-75270, Pakistan)

Abstract

The paper has applied a conventional framework of analysis of implicit markets to determine the characteristics of demand for housing attributes of quantity and quality in the urban areas of a large, low-income developing country like Pakistan. Income elasticities generally appear to be low, although somewhat higher for indicators of quality. Own-price elasticities are high while the cross-price effects with respect to different attribute prices reveal the high degree of substitutibility among these attributes. Methodological innovations in the paper include the use of a weighted factor score for the measurement of housing quality and incorporation of the effect of changes in non-housing prices on demand for housing attributes. Given the large magnitude of own-price effects and the negative impact of a rise in non-housing prices, it appears that in the face of slow growth in real incomes and double-digit inflation in Pakistan residential overcrowding conditions are likely to worsen over time.

Suggested Citation

  • Hafiz A. Pasha & Mohammad S. Butt, 1996. "Demand for Housing Attributes in Developing Countries: A Study of Pakistan," Urban Studies, Urban Studies Journal Limited, vol. 33(7), pages 1141-1154, August.
    • Handle: RePEc:sae:urbstu:v:33:y:1996:i:7:p:1141-1154
    DOI: 10.1080/00420989650011555
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    References listed on IDEAS

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