Intertemporal tenure choices

An intertemporal model of household tenure choice is estimated using data from the Michigan Panel Survey on Income Dynamics. Unlike empirical studies that focus on household tenure differences at any point in time, this analysis considers choice patterns over a 4-year period. The estimation results often indicate substantial leads, lags, and household condition duration effects on the structure of tenure status choices and the timing of their change. An implication of these findings is that inferences based on analyses of tenure choice at one particular point in time often are misleading.     

Housing tenure transitions of older households: Life cycle, demographic, and familial factors

Understanding the housing choices of the older households will grow in importance as the baby boom generation starts to retire. This analysis utilizes a rich longitudinal data set (PSID) to provide insight into the reasons why older households make housing transitions. Because of the richness of the data, this analysis is able to control for life transitions, a household's income and wealth, and connection to one's children in predicting when a homeowner makes a housing transition. The results demonstrate that age is not related directly to housing tenure choice for older households. Instead, having lower health status and being a single head of household is the important predictor of housing tenure transitions. At the same time, very few life changing events immediately lead a homeowner to become a renter, although they do influence the decision to downsize or consumer home equity. Finally, living next to one's children lowers the probability of becoming a renter or downsizing, and having richer children increases the probability of downsizing and thereby consuming one's housing wealth.     

Housing Decisions of Young Swedish Adults

Pooled and longitudinal data for the years 1989 and 1992 were used to study the housing decisions of young Swedish adults before and after the 1991 Swedish tax reform. Although the household formation and tenure choice decisions of young adults were found to be simultaneously determined, neglecting the cross-equation correlation between these two decisions had no major impact on the estimated coefficients. Demographic factors were found to significantly affect both the household formation and tenure choice decisions. Economic factors were also found to significantly affect young adults' choice of tenure mode. This is however not the case regarding the household formation decision. Young adults' decision whether to form a household was found to be rather insensitive to economic factors. Furthermore, the impact of the relative cost of owned to rented housing was found to be significantly lower after the 1991 Swedish tax reform. One possible explanation might be the smaller variation in relative cost of owned versus rented housing between households after the 1991 Swedish tax reform. Finally, neglecting household-specific heterogeneity in the tenure choice estimation causes a downward bias in the parameter estimates.     

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.     

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.     

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.     

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.     

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.     

居京韩国人住房租买选择内在影响因素分析

北京要建设世界城市，研究外国人在北京的住房租买选择，对城市空间布局和房地产发展具有重要实践意义。本文以居京韩国人为研究对象，通过调查访谈所掌握的第一手数据资料，运用卡方（χ^2）检验方法对韩国人在京租买房的内在影响因素进行了分析。研究发现，居京韩国人租买房决策主要与各职业群体对中国当地社会的依存度、家庭收入水平、未来居留时间等因子正相关，与他们在韩国是否有住房没有明显的相关性。另外，驻京大型公司的职员因有其公司给予的住房补贴，一般租房居住，对购房持消极态度。     

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.     

Household mobility in New York City’s regulated rental housing market

This study analyzes the effect New York City’s rent regulation regime has on household mobility. Using a panel dataset from the New York City Housing and Vacancy Survey, we estimate the costs and benefits to a particular household of remaining in a regulated unit each period; then in a second stage, we include the benefits of regulations (lowered rent) and the corresponding costs (from disequilibrium in consumption) as explanatory variables in two mobility models. Both logit and survival models confirm that larger benefits in one period are associated with a lower probability of moving in a second period. Similarly, larger costs (distortions in housing consumption) in one period are associated with a higher probability of moving later. While these effects are modest, they are statistically significant. The benefit and cost effects are, however, not symmetric; the pro-mobility effects of costs are roughly twice as large as the anti-mobility effects of benefits. This provides limited support for the relative loss aversion hypothesis of behavioral economics. This support is limited due to the lack of robustness of the result.     

Employment protection regulation,trade unions and tenure of employment: An analysis in 23 European countries

This article focuses on the relationship between employment protection regulation (EPL), trade unions and tenure of employment. A main hypothesis is that EPL strictness tends to prolong tenure, because rigorous rules imply that remaining with the same employer gives more job security. The role of unions can be expected to be similar. These assumptions are related to issues regarding dualisation in the labour market. Data used are the European Working Conditions Survey 2010—including 23 countries and more than 18,500 employees—combined with national‐level data on EPL, unemployment, union density and collective bargaining coverage. The analyses reveal that EPL strictness and bargaining coverage are associated with longer tenure. The same goes for having an employee representative in the workplace. The institutional variables work through interactions with individual‐level variables. For example, the impact of age, which is strongly linked to tenure, increases with stricter EPL and higher bargaining coverage.     

Analysis of the Changing Influences on Traditional Households' Ownership Patterns

Sociological and economic forces have begun to alter ownership patterns in ways not yet captured by movements in the aggregate ownership rate. While demographic factors such as marital status and family structure remain influential in determining tenure choice, their impact has waned, particularly among the best educated households and those with rising real incomes. Labor market conditions, as evidenced by increasing returns to skill, are more strongly felt than ever before in the housing market. The impact on owning of being highly educated now rivals the influence of being married with minor children. Increasingly delayed ownership is a reality, even for traditional family units with 36- to 45-year-old heads that have not prospered in the labor market. The rising real cost of even relatively inexpensive suburban housing is also beginning to be reflected in a heightened impact for real family income on tenure choice. Finally, race currently is more adversely influential in determining suburban ownership for young, middle-aged minority families than it was in 1960, particularly if the household head is not well educated. We suspect this is due to racially disparate impacts of increasingly rigorous zoning regulations and higher impact fees in the suburbs.     

The Spatial Pattern of Residential Mobility in Guangzhou,China

In urban China, residential mobility behaviors have changed fundamentally in recent decades. While research has been undertaken on the trends and causes of residential relocation for different population groups, less attention has been paid to micro‐level processes of residential change, yet the latter underscore urban dynamics. This study addresses this through a survey conducted in Guangzhou in late 2012, which analyzes the spatial flows of residential shifts within and between three distance zones—inner core, inner suburbs and outer suburbs—to reveal complex mobility trends. In particular, hukou or household registration status, socio‐economic status, the nature and rank of employment, and tenure were found to have varied effects on the probability of inward and outward shifts. More specifically, while outward shifts in recent years mainly involved local hukou holders, families with higher education levels, a higher socio‐economic status or those working for government departments and public institutions were found to be more likely to settle in high‐rise commodity housing in the inner core. The majority of non‐hukou migrants, by contrast, moved within the same street or between adjacent streets within the same suburban area, while age, socio‐economic status and homeownership were found to increase an individual's chance of an inward shift.     

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.     

Tenure choice and the riskiness of non-housing consumption

This paper analyzes a household's choice of housing tenure within a dynamic utility maximization model that yields simple analytical results under uncertainty of income, housing prices, and rents. Given a housing consumption plan, we show that a decrease in the covariance between a household's earnings and housing rents increases the likelihood of ownership. A household who plans to remain in its home over a long period is more likely to own; a household who plans to remain in its home over a short period is more likely to rent. The higher the covariance between the user cost of a home and that of other properties a household is likely to consider in the future, the more likely the household is to own this home. These predictions of our model find support in recent empirical studies.     

The analysis of residence histories and other longitudinal panel data: A continuous time mixed markov renewal model incorporating exogeneous variables

The analysis of residence histories and other longitudinal panel data is fraught with methodological problems. Much recent progress has been made in methods of analysis within discrete time. This paper extends the development of empirically tractable mixed continuous time stochastic models. Analysis of a sample of intra-urban residential histories identifies the effect of tenure type, age of household head, size of household and duration of stay on movement probabilities. Surprisingly, no further variation, as represented by a gamma mixing distribution over a hazard rate parameter, may be identified.     

城市家庭固体废弃物循环行为的影响因素——以哈尔滨市为例

城市家庭固体废弃物循环项目的成功与否取决于居民的行为,因此分析影响城市居民家庭固体废弃物循环行为的因素显得尤其重要。通过调查问卷的方式,以哈尔滨市城市居民为样本,社会人口学特征为理论基础,运用卡方假设检验、逻辑回归方法,分析了年龄、受教育程度、家庭年收入、性别和家庭规模对哈尔滨市城市居民循环行为的影响程度,得出家庭规模和家庭年收入是影响哈尔滨市城市居民家庭固体废弃物循环行为的重要因素。     

Tenure Choice with Sample Selection: Differences among Alternative Samples

Most tenure choice models using cross-sectional data have used either a sample of recent movers or a sample comprising all households. There are problems with estimating both types of models in cross-sectional data. A sample of recent movers oversamples renters, and a sample of all households will yield estimates based on household decisions made in the past. This research designs a method to correct for sample selection in a sample of recent movers. There are large differences in the importance of age, immigrant status, and immigrant length of stay as predictors of homeownership. At the same time, income effects are similar across models.