Before The Decision Of Our Final Residential Location Choice

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Before the decision of our final residential location choice model, we tested how the preferences of residential location are different among age and income groups. Stratifying the sample of households by age and income is helpful to identify the heterogeneity in housing preferences among different market segments as well as investigate whether differences in location preferences exist between different groups. All the household location choice models performed reasonably well as shown in Table 1~3. The empirical results show that different age groups have different residential location preferences. As shown in Table 1, the access to employment is statistically significant and positive in Groups 1 (age 30 or less) and 3 (age over 51), but…show more content…
As shown in Table 1, mixed land use has a positive effect on the residential location choice only in Group 1 but negative in other groups, indicating that young people prefer the location where the diversity index of land is high. This is because such location provides more diverse opportunities of jobs, recreation, and shops to the young. High residential density has a significant and negative effect on residential location choice in all groups, and the average building age also has a significant and negative effect on household residential location decision in Groups 1 and 2 but not in group 3, which implies that younger people prefer new building. Namely, while older people tend to live in their old housing continuously, young people prefer newly constructed housing.

[Table 1] Estimation results categorized by the age of the household head

As shown in Table 2, different income groups also have different preference in choosing their residential locations. The estimation results show that the access to employment has a positive effect on residential location choice of the low-income group, but it is not statistically significant in the high-income group. This implies that access to employment opportunities can be regarded as a more significant factor for the low-income households than the high-income households. While the estimation result of the land price is positive in the high-income
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