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The Importance of Community Attributes in Household Residential Location Decisions


  • Mónica Ospina
  • Santiago Bohórquez
  • Andrea Serna
  • Laura Castañeda


This study identifies how community attributes affect household residential location decisions in Medellin, Colombia. The empirical model applies the revealed preference principle: each household is assumed to have made an optimal location decision given a set of alternatives. Using household data, we estimate a conditional logit choice model for residential communities by controlling for both individual and neighborhood characteristics, including environmental attributes. The set of alternatives for each household are defined using the applicable neighborhood’s socioeconomic and geographic characteristics. The results provide an estimate of household preferences for the many characteristics of the potential choices in the choice set. In the case of Medellin, we found positive and significant preferences for public provided goods such as public schools and security but relatively low preferences for recreational and cultural spaces; households prefer that the latter be provided by the private sector.

Suggested Citation

  • Mónica Ospina & Santiago Bohórquez & Andrea Serna & Laura Castañeda, 2013. "The Importance of Community Attributes in Household Residential Location Decisions," Documentos de Trabajo de Valor Público 10932, Universidad EAFIT.
  • Handle: RePEc:col:000122:010932

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    Housing Demand; Neighborhood Characteristics; Environmental Economics;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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