Housing Quality and Tenure Choice in Bogota

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.

Grantor dc:publisher

Universidad del Rosario

Year dc:date

2019

Author dc:creator

• Baquero Vargas, Juan Pablo

• Colombia
• Housing demand
• Real estate economics
• Economía de la tierra
• Oferta de vivienda
• Política de vivienda
• Países en desarrollo
• Mercado de la vivienda

Statement dc:rights

• info:eu-repo/semantics/openAccess

Licence

• http://creativecommons.org/licenses/by-nc-nd/2.5/co/

Language dc:language

spa

Identifier

http://repository.urosario.edu.co/handle/10336/19960

OAI identifier oai:identifier

oai:repository.urosario.edu.co:10336/19960