Discrete choice model of residential location in Krakow

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.