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The demand for housing choices in the North of France : a discrete approach

Author

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  • V. Flambard

    (UMR CNRS 8179 - Université de Lille, Sciences et Technologies - CNRS - Centre National de la Recherche Scientifique)

Abstract

Purpose This research aims to analyse the housing demand in northern France with respect to socio-demographic variables and the distance between the residence and the workplace. Design/methodology/approach Econometrics with discrete choice models are used to study the three main dimensional choices of housing demand: tenure, type and location. A contribution is to use a heteroscedastic logit model where the variance of the error term is allowed to differ over alternatives and to capture in particular the heterogeneity of tastes. As a matter of fact, household characteristics are very likely to influence the magnitude of the scale parameter in the choice of housing alternatives and then influencing the results if it is not taken into account. Applications for housing demand are nearly non-existent. This paper fills this gap. Findings Econometric estimation confirms that residential choices are influenced by age, income and size of the household, as well as by the rent-to-income ratio. An increase in any of these variables decreases the probability of choices of all the alternatives other than the most often chosen alternative (which is for this application house ownership in the suburb). Moreover, the distance to work systematically influences the housing choice for single-parent families and two-earner households. Additionally, preferences are found to significantly differ between local housing markets, specifically between Lille (a large agglomeration and capital city of the North area) and Dunkerque (an industrialised area). The geographical areas are defined based on INSEE employment zones ("zones d'emplois"). Research limitations/implications This research has been performed for the north of France and may not hold for other areas even though the methodology can be replicated and the mechanisms at play are quite similar elsewhere. Practical implications An important conclusion for sustainable development is the importance to improve city centre ameniti
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • V. Flambard, 2008. "The demand for housing choices in the North of France : a discrete approach," Post-Print hal-00239211, HAL.
  • Handle: RePEc:hal:journl:hal-00239211
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