Housing, Travel Demand and Associated Cost Nexus for Residential Locational Choice of Tenant Households

Abstract

This dissertation comprises of four loosely related essays presented in separate chapters. The main objective of the entire study is to investigate housing and travel demand and associated costs of tenant households based on the residential location choice in Rawalpindi and Islamabad, Pakistan. Chapter 1 introduces the study background, issue and objectives. In Chapter 2, bibliometric analysis is conducted using VOS-Viewer and analyze 333 publications available on the Web of Sciences datasets. The study examines and maps the theoretical framework, research design, empirical methodologies, research hotspots, and spatial features highlighted in the literature. The analysis indicate that research frontiers mainly concentrated on physical components but very little attention to economic cost associated and behavioral aspects of location choice. Moreover, findings highlight that most studies focus on case studies with designed questionnaires due to the non-availability of national census or travel survey data. In chapter 3, we have developed the theoretical model of location choice by using the utilitarian framework and utility optimization techniques. This model contributes to the theoretical literature in the way that, not only introducing heterogeneity of household but house characteristics including urban amenities play a phenomenal role in the decision. In chapter 4, we have studied the urban growth patterns by using the Geographical Information System (GIS) analysis to make this research interdisciplinary. This analysis helps in to understanding the growth patterns and dynamics of land-use changes in the study area. Moreover, the chapter presents the research designs involving the preparation of a comprehensive and customized questionnaire for data gathering from 995 tenant’s households from 20 clusters in Rawalpindi and Islamabad. The primary data was collected because information for behavioral aspects is not available in existing databases. xi Chapter 5 investigates the multiscale analysis of travel and housing demand of tenants influenced by the residential location choice. Findings highlight the importance of city structure, tenant’s income level, and family structure. Housing demand is more sensitive towards the income in the case the Islamabad relative to Rawalpindi, as tenants of Islamabad are more conscious of the house size as compare to people of Rawalpindi. Interestingly, lower-income and upper-income group's housing demand is more sensitive towards rent as compared to the middle-income groups. This suggests that low-income people have a tight budget to manage their rent and high-income groups, which leads to the high sensitivity of the economic cost of accommodation. Due to more numbers of cars on average by Islamabad tenants, their travel demand is more dependents on the number of cars as compared to the Rawalpindi. Results also suggest that for low-income tenant’s households travel demand derived from the number of bikes while for high-income tenant’s households is derived from the number of cars, which seems more plausible as a high-income group can afford more car travel as compared to the low-income group. Chapter 6 investigates the commuting cost and imputed house rent based on the residential location choice for different characteristics such as city and family structures. This chapter employs a multiscale analysis to highlight fundamental differences among tenants based on the above-mentioned characteristics. Generalized Linear Square (GLS) model is used to estimate the commuting cost and rent functions of tenants. Results conclude that Tenants decide their location considering their income, and family structure whereas commuting cost and rent are basis for their decision making. It leads to either the housing location far from work place and increase the traveling cost or vice versa. Which create problems of urban sprawl, burden on urban amenities and wasteful commuting. This suggest that Policy for tenants is not available in Pakistan at federal xii or provincial level, that Cater the need of housing by introducing the Public rental housing schemes and rental policy for low income tenants that are most vulnerable economically. In Chapter 7, we have to decipher the tradeoff between the housing and travel demand; commuting cost and house rent jointly in specific locality by apply Generalized Method of Moment (GMM). Results reveal that proximity to urban amenities, the number of working people and the number of school-going children positively influence the commuting cost of tenant’s households. Factors such as distance from workplace and schools are highly significant with a negative sign, showing the house rent will be high in the proximity of the workplace and school. Negative sign between commuting cost and house rent shows that there is tradeoff between both. The study suggest that the housing and transport policies at city, provincial and federal level should consider the concerns of different income groups and family structure, and should be evidence based accounting for the commuting and housing preferences of individuals households. This may help in controlling urban sprawl and lessen the public investment on infrastructure.