Stated Preferences for Sustainable Housing Development in Germany—A Latent Class Analysis

Abstract

Despite enormous progress made in the resource-efficient housing construction as a result of technical innovation, market share of sustainable new housing development in Germany is still very low. There is a need for a demand-driven research approach to determine and exploit the potential for sustainable housing among private home buyers—the principal consumers of new housing in Germany. This study measures the preferences of German home buyers based on stated preferences survey data through the application of a discrete choice experiment. Using latent class analysis, the article identifies market segments of differing “environmental awareness” and corresponding preference heterogeneity. The results point to a latent demand for sustainable housing alternatives among private home buyers in Germany.