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Discrete choice model of residential location in Krakow

Michal Gluszak (Department of Real Estate and Investment Economics, Cracow University of Economics , Krakow, Poland)
Bartlomiej Marona (Department of Real Estate and Investment Economics, Cracow University of Economics , Krakow, Poland)

Journal of European Real Estate Research

ISSN: 1753-9269

Article publication date: 2 May 2017

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Abstract

Purpose

This paper aims to discuss the link between socio-economic characteristics of house buyers and their housing location choices. The major objective of the study is an examination of the role of household socio-economic characteristics. The research addresses the importance of previous residence location and latent housing motives for intra-urban housing mobility.

Design/methodology/approach

The research examines housing preferences structure and analyzes housing location choices in the city of Krakow (Poland) using discrete choice model (conditional logit model). The research is based on stated preference data from Krakow.

Findings

The results of this study suggest that demand for housing alternatives is negatively linked to the distance from current residence. Other factors stay equal, the further the distance, the less likely a household is willing to choose a location within the metropolitan area. The study indicates that housing motives can help explain housing location decisions.

Practical implications

The paper provides an empirical assessment of housing decisions in Krakow, one of the major metropolitan areas in Poland.

Originality/value

The paper contributes to a better understanding of the nature of housing decision and housing preferences in emerging markets in Central and Eastern Europe. As a result, presented research helps to fill the gap in housing market and urban economics literature.

Keywords

Acknowledgements

The authors wish to thank Nowy Adress sp. Z o.o. for granting permission to use the “Housing market in Poland. Demand and buyers preferences” data set. An earlier draft of this paper was presented at the 23rd European Network for Housing Research Conference in Toulouse (France), July 5-8, 2011. The authors gratefully acknowledge valuable comments from various conference participants. Last but not the least, authors wish to thank three anonymous referees whose critical comments led to significant improvement of this paper.

Citation

Gluszak, M. and Marona, B. (2017), "Discrete choice model of residential location in Krakow", Journal of European Real Estate Research, Vol. 10 No. 1, pp. 4-16. https://doi.org/10.1108/JERER-01-2016-0006

Publisher

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Emerald Publishing Limited

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