Future housing: A best-worst scaling approach to identify user requirements

Fabian Lachenmayer, Yassien Bachtal and Andreas Pfnür

ERES from European Real Estate Society (ERES)

Abstract: Global developments have led to a fundamental change in the views and interests of consumers, especially regarding housing. Consumers have new demands for the housing of the future caused by complex circumstances. On the one hand, the use of sustainable building materials and renewable energies has increased due to rising energy costs and people’s growing concern for the environment. There has also been a massive increase in the desire for autocracy in housing. On the other hand, the socio-demographic developments, which show similar tendencies within the European Union, have changed the population’s mindset. An ageing society and the decreasing ability to act in old age are giving rise to new forms of housing. Therefore, there is an enormous desire for flexible living space that can be adapted to different stages of life. At the same time, these developments require digitalisation in housing. Digitisation is a necessary prerequisite for creating a new comfortable living environment and is an additional benefit for the residents. Thus, fast digital infrastructure and smart homes are coming into focus. The three megatrends - sustainability, socio-demographic developments and digitalisation - have an influence on future housing and are therefore focused on in this study. Against this background, the study itself consists of two parts. First, it will examine which aspects affiliated with the three megatrends are changing housing from the perspective of private households. Then the different demands for housing will be analysed, according to various identified subgroups. An extensive literature research forms the basis of the survey conducted with n= 962 private households in Germany. To achieve the research objectives, we conducted an experimental study that used the best-worst scaling method. The best-worst scaling method measures the individual strength of the respondents' perception of how a certain aspect will change future housing. Subsequently, a regression analysis is used to show the differences in perception of different subgroups. The results of this study show that sustainable aspects are particularly relevant for home buyers. Considering the current environmental developments and similar socio-demographic developments within Europe, the results provide valuable insights that can also be transferred to foreign real estate markets. Thus, the present results provide important impulses for housing industry practice and point out important paths for further research.

Keywords: best-worst-scaling; future housing; megatrends; transformation process (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2023-01-01
New Economics Papers: this item is included in nep-ure
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