Impact of Accessibility on Residential Location Choice: A Case Study of Hangzhou, China

Abstract

This study examines the factors that influence households’ location choice in the context of rapid urbanization in Hangzhou, China, where new housing and transportation infrastructure are expanding. A conditional logit model based on community scale is developed to consider the impact of location accessibility characteristics on households’ housing choices, as well as the differences in choices across households. Considering the background of high house prices, households will prefer house prices as the determining factor in the tradeoff between housing prices and accessibility. The multinomial logit model model of joint selection of housing prices and location is constructed to study the differences in the preferences of different types of households in housing choices. The study finds that (1) accessibility and housing prices are significant factors that affect residential location choice. Low-income families place more importance on public transportation conditions near the community. (2) Accessibility factors, including commuting time and the convenience of transportation facilities, such as the subway and expressway exit, have significant explanatory power on residential location choice. Holding other factors constant, for every minute increase in commuting time, the odds of residents choosing a residential location decrease by 0.96 times. (3) Residents with different socioeconomic characteristics exhibited certain differences in their housing price and accessibility preferences. Specifically, households with a college degree or higher are 8.59 times more likely to choose a residential area away from the city center and at a higher price than those with less education. Housing location choice is a widely discussed topic. There are diversified preferences based on the stages of urban development and social, economic, and cultural backgrounds. This study focuses on cities that are in the stage of rapid urbanization and are densely populated. Public facilities such as subways and commercial centers have been continuously improved, and cities continue to expand and have developed into multicenter spatial structures. Thus, the choice of housing location is accompanied by many other considerations, including the need for housing quality, public amenities, and housing prices. Taking Hangzhou, China, as a case study, the study finds that commuting time has a significant impact on location choice, and the proximity of transportation facilities, such as subways and expressways, has a significant positive impact on community choice. The tradeoff between housing prices and location varies from person to person. Highly educated people choose neighborhoods with high housing prices, even if their accessibility to traditional city centers is low, reflecting their relatively high housing affordability and pursuit of housing quality. Therefore, for urban governments, promoting the equalization of public services is conducive to the stable and balanced development of the housing market.