HOUSING DEMAND AND COMMUNITY CHOICE - AN EMPIRICAL-ANALYSIS

Housing demand reflects the household's simultaneous choice of the nei ghborhood, whether to own or rent the dwelling, and the quantity of ho using services demanded. Existing literature emphasizes the final two factors, but overlooks the choice of community. This paper develops an econometric model that incorporates all three components, and then es timates this model using a sample of Tampa, Florida, households. Incor porating community choice increases the price elasticity of demand and reduces the differential between white and comparable nonwhite househ olds. The results are robust to the inclusion of permanent income and taxes. (C) 1997 Academic Press.