EconPapers    
Economics at your fingertips  
 

Housing Demand in Tokyo

Piyush Tiwari

International Real Estate Review, 2000, vol. 3, issue 1, 65-92

Abstract: Housing policy formulation should be informed by a careful understanding of the behaviour of the housing market, as reflected by housing demand. Such basic information is important, not only for improved project design but also for the development of better sector-wide policies. Housing is a complex outcome of cultural, economic and regulatory environment. Consistent estimates of price and income elasticity of housing demand are prerequisites for effective policy design. Results, from earlier studies on Japanese housing markets, are inconclusive and the estimates of price and income elasticity of housing demand vary over a wide range. It may be argued that measuring the volume of housing services as housing expenditure, as is done in previous research, essentially ignores the heterogeneity, and for large number of policy purposes like impact of tax on tenure choice, choice between owning and renting etc., the distribution of housing consumption into qualitatively different categories is of more interest than an aggregate qualitative measure of housing expenditure alone. This paper analyzes the demand for housing in Tokyo using a discrete choice model. Three dimensions of choice, tenure, dwelling size (as number of rooms) and structure type (as type of unit) determine demand for housing which are modeled simultaneously. The income elasticity of market share of ownership house is positive and ranges between 0.16 to 0.34. However, income elasticity for rental houses is negative ranging between -0.17 to -0.57. The own price elasticities vary over a large range from -0.03 to -5.1 with smaller in magnitude for ownership houses and larger for rental houses.

Keywords: Housing demand; Discrete choice model; Nested Multinomial Logit Model (search for similar items in EconPapers)
JEL-codes: L85 (search for similar items in EconPapers)
Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
https://www.gssinst.org/irer/wp-content/uploads/20 ... 1-Housing-Demand.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ire:issued:v:03:n:01:2000:p:65-92

Ordering information: This journal article can be ordered from
Global Social Science Institute, 9200 Corporate Blvd., Suite 420 Rockville, MD 20850
https://www.gssinst.org/gssinst/index.html
gssinst@gssinst.org

Access Statistics for this article

International Real Estate Review is currently edited by Professor Sing Tien Foo and Professor Ko Wang

More articles in International Real Estate Review from Global Social Science Institute Global Social Science Institute, 9200 Corporate Blvd., Suite 420 Rockville, MD 20850.
Bibliographic data for series maintained by IRER Graduate Assistant/Webmaster (irer@nus.edu.sg).

 
Page updated 2023-06-15
Handle: RePEc:ire:issued:v:03:n:01:2000:p:65-92