Determinants of Housing Demand in Urban Areas of Pakistan: Evidence from the PSLM
Ayaz Ahmad,
Nasir Iqbal () and
Rehana Siddiqui
Additional contact information
Ayaz Ahmad: Pakistan Institute of Development Economics, Islamabad
Rehana Siddiqui: Pakistan Institute of Development Economics, Islamabad
The Pakistan Development Review, 2018, vol. 57, issue 1, 1-25
Abstract:
The study attempts to investigate the determinants of housing demand in urban areas of Pakistan. The empirical analysis is carried out using the Pakistan Social and Living Standard Measurement (PSLM) survey 2004-05 and 2010-11. The hedonic price model is used for the estimation of house prices. In order to control the selectivity bias between the tenure choice and the quantity of housing services demanded, Heckman's two-step selection procedure is used. The empirical analysis shows that housing price and income (temporary and permanent) play an important role in the determination of the housing units' demand. An increase in houses' prices causes decrease in demand for the housing units while the housing demand increases when the permanent income increases. On the face of change or increase in the transitory income, the demand for housing units remains static, since people do not desire to make long-term decisions based on volatile income. To manage rising housing demand, government should focus on developing effective and enforced price control mechanisms. Keywords: Urban Housing Demand, PSLM, Pakistan
Keywords: Urban Housing Demand; PSLM; Pakistan (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/2018/Volume1/1-25.pdf (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:pid:journl:v:57:y:2018:i:1:p:1-25
Access Statistics for this article
More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().