The downpayment constraint and housing tenure choice : A simplified exposition

This paper uses a two-period model to illustrate the effect_ of the downpayment constraint on housing tenure choice. The key trade-off induced by the constraint (the sacrifice of initial consumption in return for the tax-related benefits of eventual homeownership) is clearly portrayed. In addition to illustrating the basic problem, the analysis derives the impact of parameter changes on the outcome of the tenure decision.     

An econometric model of housing price, permanent income, tenure choice, and housing demand

This paper addresses the determination of housing price, permanent income, tenure choice, and housing demand. Full housing demand elasticities incorporate the interactive effects among the four stages of the model. Price and income have major effects in the tenure choice equation. Sociodemographic variables, such as age, have complex effects that may be lost in simpler forms of estimation.     

Cross-sectional estimation of a simultaneous model of tenure choice and housing services demand

In this paper we analyze the demand for housing services, integrating into a single analysis a systematic treatment of several important conceptual and empirical issues. Our three major objectives are to (1) evaluate the empirical importance of the simultaneity between the tenure choice and consumption level decisions; (2) analyze the relationship between household type and housing demand; and (3) present new estimates of the parameters of housing demand which are based on detailed microdata. In the process, we derive and estimate overall income and price demand elasticities which incorporate the impacts of income and price on both the tenure choice and consumption level decisions.     

Household factors and discrimination in housing consumption : Further developments in the analysis of tenure choice within housing careers

The decision of households regarding housing consumption should be viewed as decisions within an overall housing career. A model of household residential mobility is derived which may be empirically investigated through a generalisation of competing risk analysis. It is explained how the effects of omitted variables may be dealt with by means of a non-parametric characterisation of their multivariate distribution within a marginal likelihood framework. The problem of initial conditions is discussed in relation to the design of the analysis. The model is applied to the residence histories of a sample of households from the Michigan Panel Study of Income Dynamics     

Credit impairment and housing tenure status

We revisit the relationship between financing constraints and homeownership rates using the 2004 wave of the 1979 National Longitudinal Survey of Youth. The survey respondents are a nationally representative sample of Americans 39–47 years of age as of this wave. As most of the sample had been in their current residence prior to 2004, this study reflects housing tenure status decisions made prior to the recent credit expansion and subsequent crisis. Past research has emphasized wealth constraints, and income constraints as limiting homeownership. The estimation results here point to primary roles for credit impairment and lack of credit history. We also find that excluding controls for the endogeneity of wealth and income may mask the impact of credit factors.     

The demand for housing in Sweden: Equilibrium choice of tenure and type of dwelling

Most studies of housing demand and tenure choice only identify two modes of tenure: owner-occupied one-family houses and rental apartments. Furthermore they are typically based on a cross section across all households. In this study we use recent Swedish data to overcome these weaknesses. We identify owner-occupied apartments (coop shares) as a third mode of tenure, and show that this should be treated separately. We also use information about the household's own assessment of its probability of moving during the next year. We demonstrate that it makes a large difference if likely movers are eliminated from the sample.     

Mobility and optimal tenure choice

In this paper, we offer a dynamic model of the optimal tenure behavior of an individual who faces the possibility of moving multiple times during his lifetime. We also investigate the lifetime effects of such factors as income tax, property tax, transaction costs, and mortgage rates on the household’s tenure choice. The agents in the model utilize a genetic algorithm, a probabilistic search approach, to determine their optimal lifetime tenure choice path. The agents are forward looking in that they anticipate such possible events as changes in jobs, marital status, household size, or dissatisfaction with current residence. Our results suggest several housing policy implications and explain some of the empirical findings in the literature.     

Household tenure choice and migration

A model of the joint tenure choice and migration decision is estimated. Unlike previous work that has considered each decision separately or examined the premigration tenure status choice jointly with the migration decision, this analysis addresses change in tenure status as well. The empirical findings indicate that variables often thought to affect either or both tenure status of the residence location change decision have offsetting or augmenting effects on their joint probabilities which are masked if the decisions are examined independently.     

The relationships between income and price elasticities in studies of housing demand,tenure choice,and household formation

Three decisions pertaining to the demand for housing are (1) household formation, (2) tenure choice, and (3) how much housing to consume, given the household formation and tenure choice decisions. Income and price elasticities can be estimated that include one, two, or all three of these decisions. The relationships between these elasticities are developed.     

Housing tenure choice and the dual income household

Housing tenure choice has been the subject of a very large literature. Many treatments have sought to estimate the effect of household income on the likelihood of home ownership. To date, no study has ever disaggregated the household income of married couples into the separate labor income components to see if one partner’s income has a different effect than the other. Using a derived likelihood function to control for censoring in the wife’s income, this paper estimates the effect of separate incomes on housing tenure choice, accounting for possible endogeneity of the wife’s income. To compare the results of this estimation method, the paper also estimates the standard IV models, 2SLS and IV probit. While the results show that there is no endogeneity of the wife’s income, ignoring the censoring of the endogenous variable (when a large fraction of observations are censored) can possibly lead to biased coefficient estimates. Also, this paper confirms the importance of total household income, which has a larger effect than the total disaggregated components.     

Residential mobility and social capital

This paper empirically investigates the role of social capital in households' residential mobility behavior by considering its spatial dimension. This study focuses on a household's social ties with people living nearby, which we refer to as its “local social capital.” Local social capital may deter residential mobility, because the resources stemming from them are location-specific and will be less valuable if a household moves. We conjecture that a household's possession of local social capital has a negative effect on its residential mobility, and this negative effect of local social capital may be stronger on long-distance mobility than on short-distance mobility. Our empirical investigation is based on data from the Panel Study of Income Dynamics. We obtain evidence which is supportive of these conjectures.     

Housing tenure choice: Evidence from time series

A model of tenure choice is specified and estimated. A simple expression to represent the expected rate of return on equity for a homeowner is developed. Also the influence of the federal housing subsidy programs is analyzed. Both, plus permanent income and the implicit rental price of owner-occupied housing, are important determinants of tenure choice. Other influences are the financing gap with the standard mortgage instrument in an inflationary environment, the number of children less than 18 per family, assets and liabilities, and mortgage credit terms. Finally, the changes in housing tenure choice over the estimation period are analyzed.     

Residential change and economic choice behavior

Theory of economic choice behavior is applied to construct a dynamic model of residential change at the neighborhood scale. The utility of a neighborhood depends on the investor's decisions, and two different specifications are considered. In the first, these decisions result from a strategy fixed a priori. The model can then be easily studied. The second is concerned with the simplified case of a single neighborhood and supposes that the housing price and quality are dependent on maintenance expenditures viewed as a function of the number of individuals living in the neighborhood. It is then shown how different processes of residential change can be generated by purely economic factors.     

Tenure choice and housing demand in Japan

This paper reports the results of an empirical analysis of tenure choice and housing demand that makes use of household-level data from Japan. The paper finds that the price and permanent-income elasticities of demand for owneroccupied housing are approximately −0.8 and 1.4, respectively, and that these estimates are highly robust. The price elasticity estimate is comparable to those for other countries, but the income elasticity estimate is much higher, possibly because of the greater accuracy of the income variable. It is also found that the tenure choice and housing demand decisions are apparently not made simultaneously.     

Residential mobility and job changes under uncertainty

This paper empirically investigates households' residential mobility and job change decisions under uncertainty. We allow households' degree of risk aversion to be a confounding factor in the joint decision of residential mobility and job changes. Using panel data to estimate a random effects multinomial probit model of households' joint decision of residential and job mobility, our empirical results show that risk aversion discourages a household from making any changes. Moreover, when compared to single changes in either job or residential locations, risk aversion is more discouraging for joint changes to more central residential locations and less discouraging for joint changes to more distant residential locations. These effects are statistically significant, albeit small in magnitude. Our empirical results demonstrate the uncertainty does play a role in households' job and residential mobility decisions.     

Residential search and choice of displaced households

Centrographic analysis is used to compare the residential search and choice behavior of 41 households who experienced either short-term or long-term displacement costs after moving out of the inner city of Saskatoon, with the behavior of 90 households who moved as if voluntarily. While the displaced households tended to search for housing in the same neighbourhoods as the voluntary movers, they chose a “new” home much farther away from their “old” home. By means of a logistic regression, the reasons for this more distant move are inferred to reflect both the tightness of the housing market and the housing search barriers that displaced households, who were more likely to be young or old renters, would have encountered.     

Residential mobility with job location uncertainty

This paper investigates the relationship between job changes and residential mobility. A job change may be prompted by reasons unrelated to factors associated with housing consumption. However, a job change may lead to an adjustment to housing consumption, i.e., residential relocation. Previous studies find that job relocations are positively associated with residential mobility. This paper departs from previous studies by looking at the effects of an uncertain future job location on residential mobility and mobility expectation. It is conjectured that with the existence of costs of residential mobility, a household head's likelihood for changing jobs in the future dampens the household's propensity to move, but encourages the formation of mobility expectation. These conjectures are examined empirically using data from the Panel Study of Income Dynamics and they are confirmed.     

公共租赁房退出机制及其政策选择

我国正在大力发展公共租赁房,但对公共租赁房退出机制的理论研究目前仍比较缺乏。在梳理相关文献的基础上,运用博弈论和比较研究的方法,指出政府管理部门应采取的策略,并对公共租赁房不同退出机制的效果进行了分析。结合我国的实际情况,认为应采取自愿退出、强制退出和激励退出相结合的方式创新我国公共租赁房的退出机制。     

Tenure choice and expected mobility: A synthesis

This study employs a joint logit probability model to estimate the effects of a vector of independent variables on the household's current tenure choice and expected mobility which are hypothesized to be simultaneously determined. In the empirical analysis it was found that the coefficient on the endogenous variables (tenure choice and expected mobility) is the most highly significant of all the coefficients estimated. In addition, in previous analyses the age of the household head has always exhibited a highly significant positive effect on the probability of ownership. However, in this analysis it is demonstrated that this age variable was acting as a proxy for the expected mobility and wealth of the household.