Housing Quality and Tenure Choice in Bogota Tesis

Perfil

Descripción

Master's thesis

Tutor

García Suaza, Andrés Felipe Persona

Thesis author

Baquero Vargas, Juan Pablo

Resumen

Empirical housing articles have been scarce in developing countries. It results paradoxical given that homeownership and housing quality have continuously been included at the top of the developing countries political agendas. The present paper provides elements that explain the own/rent decision and the quality dwelling choice in the context of a developing country. The article follows a reduced-form approach that allows us to characterize some critical facts of the housing market equilibrium in the city of Bogota. We show that the tenure choice decision can be largely explained by the price of renting relative to owning and the permanent income. We find evidence that the poorer households delay home purchasing in contrast to the wealthier households, and the workers with unstable labor income are less likely to become homeowners. Furthermore, we estimate price and income elasticities coefficients that quantify the households' dwelling quality response to price and income variation. Thus, a 1% increase in prices reduces the average dwelling quality in 0.16% for the homeowners and 0.25% for the renters, whereas a 1% increase in permanent income increases the average dwelling quality in 0.08% both for homeowners and renters.

fecha de publicación

julio 17, 2019 11:26 p. m.