Urban Housing Rehabilitation, Move, and Location Decisions: An Analysis of Homeowners from the National Sample of the Annual Housing Survey

摘要

This study develops and applies a model of investment in housing capital suitable for analyzing the dynamic forces present in urban housing markets and the effects of government policies. The focus is on decisions to rehabilitate existing housing units as one form of investment in housing capital and on locational choices of households. Calculations are based on data in the Annual Housing Survey. The model allows household, dwelling unit, and neighborhood characteristics as well as rehabilitation and move decisions to be simultaneously determined. By introducing depreciation of housing capital and rehabilitation investment, the model also analyzes how moving behavior alters rehabilitation investment levels and costs. Results indicate that rehabilitation investment costs are lower for younger households, which cause nonmovers and movers from younger households to undertake more rehabilitation; positive demand shifters cause even greater levels of rehabilitation for younger households who are nonmovers. There was some evidence that the presence of abandonment, a proxy for neighborhood decline, motivates moves. Withdrawal of resources from central cities lowers the rewards for undertaking rehabilitation; improving neighborhoods have high ownership turnover and attract rehabilitating households. Rehabilitation activities are greater in growing metropolitan areas. The findings are of special interest in evaluating community development programs, the future effects of rehabilitation investment on housing markets, and the housing opportunities of minority households. Tabular data and 33 references are provided.