Instead of viewing housing as a competing use of capital, as in Chapter 2, the present analysis turns to housing as a competitor for consumer resources. This involves a shift in the definition of housing. While the preceding chapter dealt with new construction or additions to the housing stock, we now examine consumer allocations to pay for the services rendered by the total inventory of dwellings. What factors explain inter-country variances in the share of household budgets allocated to housing services? The answer will be more tentative than the results of the investment analysis. The number of countries reporting relevant data is smaller, the sample is still more heavily weighted by advanced nations, and statistics are less adequate. In comparison to the determinants of housing investment, the theoretical underpinning for empirical work on the determinants of housing consumption across nations is quite weak. This chapter represents a first effort to chart new territory.
KeywordsDisposable Income Consumption Expenditure Income Elasticity Housing Stock Permanent Income
Unable to display preview. Download preview PDF.
- 7.F. G. Mittelbach, ‘Housing Policies and Programs: International and Comparative Dimensions’, Proceedings, Dialogue in Development: Housing, Third World Congress of Engineers and Architects in Israel (1974) p. 49.Google Scholar
- 8.E. Roistacher, ‘Housing and Homeownership’, in J. N. Morgan (ed.), Five Thousand American Families–Patterns of Economic Progress, ii(Ann Arbor: Survey Research Center, University of Michigan, 1974) pp. 1–40.Google Scholar
- 9.A. E. Holman, ‘Estimates for Income Elasticity of Demand for Use in Long-Term Forecasts of the Demand for Housing’, Housing Requirements and Demand: Current Methods of Assessment and Problems of Estimation, ST/ECE/HBP/46 (Geneva: United Nations, 1973) pp. 84–7.Google Scholar