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The Demand for Housing Additions: An Empirical Analysis
Author(s) -
Ziegert A. L.
Publication year - 1988
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00469
Subject(s) - ceteris paribus , economics , investment (military) , consumption (sociology) , value (mathematics) , labour economics , demographic economics , public economics , microeconomics , mathematics , statistics , sociology , political science , social science , politics , law
Little is known of a household's decision to make a housing addition despite the large and growing size of these expenditures. This paper examines this decision in a two‐step empirical process: first, those factors that influence the probability of a housing addition are determined, and second, the value of the addition made is analyzed. Preliminary results indicate that unmet housing consumption needs, but not the investment potential of housing additions, have a significant impact on both the probability of an addition and the value of an addition made. Furthermore, ceteris paribus, non‐white households have a greater probability of making a housing addition, and on average, spend more on housing additions than do white households.