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Measuring the effect of unobservable factors in residential choice behavior

Author

Listed:
  • Berndt Lundgren
  • Fan Yang Wallentin

Abstract

Previous research has shown that it is likely that residential choice behavior is mostly affected by unobservable factors. The purpose of this research paper is to investigate the effect of heterogeneous unobservable factors in residential developments on residential choice behavior using exploratory and confirmatory factor analysis.Our results show that there are significant effects of unobservable factors on residential choice behavior. The methodology presented can be used to advise developers, architects or planners in evaluating those attributes that create value to improve, for example, the overall design solutions in real estate development projects.

Suggested Citation

  • Berndt Lundgren & Fan Yang Wallentin, 2015. "Measuring the effect of unobservable factors in residential choice behavior," ERES eres2015_292, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2015_292
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    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2015-292
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    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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