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This paper estimates income and price elasticities for housing attributes for each region of Chile in order to evaluate the sensitivity of their demand to price changes as well as whether they are considered luxuries or basic necessities. Using five cross section household surveys (CASEN) from 2000-2011, our results suggest that based on income elasticities, Housing Size (HS) and Housing Location (HL) are basic necessities. Contrarily, Housing Quality (HQ) and Housing Features (HF) are considered luxury goods. HS and HL are more price-inelastic than the other attributes. These results are consistent across regions.

TOWARDS HOUSING POLICIES THAT CONSIDER HOUSEHOLD’S PREFERENCES: ESTIMATING THE DEMAND FOR HOUSING ATTRIBUTES IN CHILE