Household-level dynamics in residential location choice modelling with a latent auction method

Abstract

A longstanding deficiency in the modelling of residential location choices is the common assumption of a single household decision-maker. This paper contributes to a growing literature on methods to capture intra-household dynamics in this decision process. A latent auction approach is employed to estimate a residential location choice model for the Greater Toronto Area. The present work extends the consideration of individual utility factors beyond simple commute time, to include frequency of automobile use, transit use, and the cost of parking at the destination. Results suggest a weakening differential between male and female roles in the residential location choice, as multi-worker households are increasing in response to increasing costs of living. The strength of the latent auction model is confirmed as a means of linking bid-rent with observed market prices. Several conclusions are drawn out of the model results, including a pattern of larger households preferring the larger and cheaper houses characteristic of suburban areas of the Greater Toronto Area.