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Drivers of housing purchasing decisions: a data-driven analysis

Samer BuHamdan (Department of Civil and Environmental Engineering, Hole School of Construction Engineering, Faculty of Engineering University of Alberta, Edmonton, Canada)
Aladdin Alwisy (M.E. Rinker, Sr. School of Construction Management, College of Design, Construction, and Planning, University of Florida, Gainesville, Florida, USA)
Ahmed Bouferguene (Campus Saint-Jean, University of Alberta, Edmonton, Canada)

International Journal of Housing Markets and Analysis

ISSN: 1753-8270

Article publication date: 29 April 2020

Issue publication date: 9 February 2021

300

Abstract

Purpose

The purpose of this paper is to develop a clear understanding of the features that increase the probability of condos’ sale, with a focus on design-related features.

Design/methodology/approach

The present research uses survival analysis (SA) and the Cox proportional-hazards regression (CPHR) to analyze condo sales data provided by the REALTORS® Association of Edmonton (RAE) (Alberta, Canada).

Findings

The analysis of the provided data shows that the listed price, building age, appliances and condo fees have less effect on the time a condo spends on the market compared to the condo’s physical features, such as construction material, interior finishing and heating type and source.

Research limitations/implications

The data used in the present research comes from one geographical area (i.e. Edmonton, Canada). Furthermore, the data provided by the RAE does not include any real estate transactions not involving a realtor. Additionally, the present research, owing to its focus on design-related features, does not control features related to the external environment, such as community and transportation proximity.

Practical implications

The findings of the present research help construction practitioners (e.g. architects, builders and realtors) better understand the features that influence condo buyers’ decisions. This knowledge helps to develop designs and marketing strategies that increase the likelihood of selling and decrease the time listed condos spend on the market.

Originality/value

The present research expands our knowledge of the drivers influencing the purchasers’ decisions concerning the building’s physical features that can be controlled during the design stage. Also, analyzing the provided data by using SA and CPHR, as followed in this paper, facilitates the inclusion of records that are listed but not sold, which helps to overcome the survivorship bias and avoid the over-optimism that exists in the present literature.

Keywords

Acknowledgements

The authors would like to extend their gratitude to the REALTORS(R) Association of Edmonton for their help and support in providing the data used in the present research.

Data Availability.

The data used in the present research was obtained from the Edmonton Realtor Association and is governed by a non-disclosure agreement with the data provider.

Citation

BuHamdan, S., Alwisy, A. and Bouferguene, A. (2021), "Drivers of housing purchasing decisions: a data-driven analysis", International Journal of Housing Markets and Analysis, Vol. 14 No. 1, pp. 97-123. https://doi.org/10.1108/IJHMA-02-2020-0018

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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