A simulation model of residential mobility and housing choice

Abstract

Residential mobility is the outcome of housing market search. Mobility rates depend on the search intensity of the household, the arrival rate of opportunities in the market, and the rates of acceptance of these opportunities by the households. Micro-analytical models of overt mobility fail in decomposing the compound rate into its constituent parts and can therefore not distinguish between demand- or supply-driven changes in the housing market. Micro-analytical models of stated preferences are only partial and do not reflect the actual behaviour of households in a specific housing market context. Simulation models of residential mobility and housing market search offer a potential advantage over micro-analytical models, due to their flexible nature. By simulating demand, supply, and the actual match of households to vacancies, a full representation of the housing market can be given.