Drivers of housing purchasing decisions: a data-driven analysis
International Journal of Housing Markets and Analysis
ISSN: 1753-8270
Article publication date: 29 April 2020
Issue publication date: 9 February 2021
Abstract
Purpose
The purpose of this paper is to develop a clear understanding of the features that increase the probability of condos’ sale, with a focus on design-related features.
Design/methodology/approach
The present research uses survival analysis (SA) and the Cox proportional-hazards regression (CPHR) to analyze condo sales data provided by the REALTORS® Association of Edmonton (RAE) (Alberta, Canada).
Findings
The analysis of the provided data shows that the listed price, building age, appliances and condo fees have less effect on the time a condo spends on the market compared to the condo’s physical features, such as construction material, interior finishing and heating type and source.
Research limitations/implications
The data used in the present research comes from one geographical area (i.e. Edmonton, Canada). Furthermore, the data provided by the RAE does not include any real estate transactions not involving a realtor. Additionally, the present research, owing to its focus on design-related features, does not control features related to the external environment, such as community and transportation proximity.
Practical implications
The findings of the present research help construction practitioners (e.g. architects, builders and realtors) better understand the features that influence condo buyers’ decisions. This knowledge helps to develop designs and marketing strategies that increase the likelihood of selling and decrease the time listed condos spend on the market.
Originality/value
The present research expands our knowledge of the drivers influencing the purchasers’ decisions concerning the building’s physical features that can be controlled during the design stage. Also, analyzing the provided data by using SA and CPHR, as followed in this paper, facilitates the inclusion of records that are listed but not sold, which helps to overcome the survivorship bias and avoid the over-optimism that exists in the present literature.
Keywords
Acknowledgements
The authors would like to extend their gratitude to the REALTORS(R) Association of Edmonton for their help and support in providing the data used in the present research.
Data Availability.
The data used in the present research was obtained from the Edmonton Realtor Association and is governed by a non-disclosure agreement with the data provider.
Citation
BuHamdan, S., Alwisy, A. and Bouferguene, A. (2021), "Drivers of housing purchasing decisions: a data-driven analysis", International Journal of Housing Markets and Analysis, Vol. 14 No. 1, pp. 97-123. https://doi.org/10.1108/IJHMA-02-2020-0018
Publisher
:Emerald Publishing Limited
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