Housing choice of households in Turkey: An econometric approach

Qualitative choice models depend on random utility theory which assumes that the decision maker will choose the alternative that provides utility maximization. Random utility functions accept that the decision makers have a perfect identification skill. It is known that when it comes to housing choice, households examine every alternative and depending on the budget constraints choose a housing alternative that has the maximum utility for the household. Therefore each household demonstrate different behavior.This study aims to put forward the factors that affect the choice of tenure and dwelling type of households in Turkey by using 2006 budget survey data of Turkish Statistics Institution. For this purpose, effects of explanatory variables consisting of individual characteristics and housing attributes on the housing choice have been discussed by using Multinominal Logit Model and Nested Logit Model of multinomial choice models.