Determinants of Housing Consumption

  • Leland S. Burns
  • Leo Grebler


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.


Disposable Income Consumption Expenditure Income Elasticity Housing Stock Permanent Income 
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Copyright information

© Leland S. Burns and Leo Grebler 1977

Authors and Affiliations

  • Leland S. Burns
    • 1
  • Leo Grebler
    • 1
  1. 1.University of CaliforniaLos AngelesUSA

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