Dynamic Housing Search Model Incorporating Income Changes, Housing Prices, and Life-Cycle Events

Abstract

Modeling housing search behavior is a crucial component of land use modeling. Land use modeling from a specific point of view shares close ties with the transport system. As a result, housing search behavior has become an attractive research topic to travel demand modelers and continues to be a topic of interest to urban planners, geographers, and economists. This paper presents a conceptual framework for long-term decisions of household members with a specific focus on residential relocation-related decisions. The reasons for movement and timing of movement are modeled in this paper using two approaches: (1) a competing hazard formulation, and (2) a conditional hazard and discrete choice model. Australian longitudinal data are used to develop the econometric models in which income change, property value, unemployment rate change, and demographic dynamics are available.