Factors influencing residential location choice: learnings from the Indian context

Abstract

PurposeThe purpose of the present study is to explore the factors that influence the residential location choice of households in the Indian context.Design/methodology/approachTwo sub-urban towns of Kolkata, i.e. Biddhanagar Municipal Corporation and Rajarhat Newtown, are taken as case studies. In total, 34 variables are considered related to the household's socioeconomic background (10), dwelling (3), travel (2) and level of importance of neighborhood characteristics (19). A revealed preference household survey is conducted, which resulted in the collection of 390 samples. Firstly, 19 level of importance variables are deduced to 3 latent factors using exploratory and confirmatory factor analysis. After that, a utility function is estimated using a multinomial logit regression to identify significant factors.FindingsThe results indicate the significance of car ownership, work travel time, work mode, monthly income, proximity to work, proximity to family/relative/friends, proximity to quality schools, quality of physical infrastructure such as water availability, power availability and housing typology among others in the residential location choice of households.Research limitations/implicationsKolkata, a major metropolitan area in eastern India, has been experiencing space constraints to cater to the housing demand of the ever-increasing population. Although satellite towns are being developed, the infrastructure landscape in such towns is uneven, resulting in more housing demand in one area than another. The study furnishes significant findings to develop more informed policies to attract households in low-demand areas and manage high-demand areas to achieve sustainable planning.Originality/valueConsidering the importance of geographical context, it is the first study on residential location choice, providing a perspective of household behavior from eastern India. It also shows the importance of physical infrastructure attributes in residential location choice for developing countries, which is seldom employed in the current practice. Moreover, previous studies (although few) done in India consider the objective value of location characteristics. The present study focuses on subjective value or the level of importance perceived by respondents.