Abstract

While almost all studies on housing choice in the literature use econometric methods, the present paper applies the Vlsekriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method as a multi-criteria decision-making (MCDM) method. The VIKOR introduces the multi-attribute ranking indices based on a particular measure of closeness to the ideal solution. This method was applied using the household income and expenditure survey (HIES) for urban regions of the Hamedan province in Iran. The best dwelling units for three groups of decision makers (household heads) with different levels of education were identified. The results showed that the level of education has a direct effect on housing choice in the study area.

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