Demand for Housing Attributes in Developing Countries: A Study of Pakistan

Abstract

Sum m ary. The paper has applied a con vention al fram ework of analysis of im plicit markets to determ ine the charac teristics of dem and for housing attrib utes of quantity and quality in the urban areas of a large, low -incom e develop ing cou ntry like Pakistan . Incom e elasticit ies gen erally appear to be low , alth ough som ew hat higher for indicators of quality. O wn-price elasticit ies are high while the cross-p rice effects with resp ect to different attrib ute prices reveal the high degree of substitu tibility am ong these attrib utes. M ethodological innovation s in the paper include the use of a weigh ted factor score for the m easurem ent of housing quality and incorp oration of the effect of changes in non-housing prices on dem and for housing attrib utes. G iven the large m agn itude of own-price effects and the negative im pact of a rise in non-housing prices, it appears that in the face of slow grow th in real incom es and double-d igit in¯ation in Pakistan resid ential overcro w ding con dition s are likely to w orsen over time.

Housing Attribute Preferences in a Northern Mexico Metropolitan Economy

“…Ciudad Juarez has a unique identity as a result of its history, geographic location, and demographic characteristics. Consequently, amenity values will potentially differ what has been measured for other regional economies (Arimah 1992;Cheshire and Sheppard 1995;Pasha and Butt 1996). Similar to other large cities, Ciudad Juarez is laid out in a polycentric manner and residents commute to the various commercial and industrial employment centers.…”

“…Most of the hedonic attributes pricing articles are based on the methodology proposed by Rosen (1974). It has been applied to data from a fairly large number of different housing markets (Blomquist and Worley 1981;Arimah 1992;Cheshire and Sheppard 1995;Pasha and Butt 1996). These studies have generally established that physical traits and neighborhood amenities play important roles in determining residential real estate values.…”

Preferences for housing attributes in Saudi Arabia: A comparison between consumers' and property practitioners' views

“…Extrinsic attributes include factors such as exterior design and appearance, building quality and materials, and exterior space (Al-Momani, 2003;Bhatti & Church, 2004;Wang & Li, 2006). There are also location and environment attributes (Pasha & Butt, 1996;Yusuf & Resosudarmo, 2009). Huturbia et al (2010) classify location attributes in to three categories: those related to land use, socio-economic considerations and transportation.…”

Towards Housing Policies That Consider Household’s Preferences: Estimating the Demand for Housing Attributes in Chile

“…Besides the clear and interesting application, the incorporation of the AIDS approach undoubtedly brought microeconomic consistency to this literature, giving us a rational framework for our analysis. Although with less microeconomic consistency in calculating elasticities, interesting empirical exercises in this line are Arimah (1992) and Pasha and Butt (1996).…”