Heterogeneities in willingness to pay for circular affordable housing: insight from young users

Abstract

Circular affordable housing (CAH) is crucial to advancing sustainability, but the lack of empirical evidence on users’ active attitudes towards circularity limits its applicability. To fill this gap, this study utilizes discrete choice experiments to thoroughly explore young users’ preferences and willingness to pay for a circular business model (CBM) in affordable housing by considering Dutch and Taiwanese cultural contexts. The analyses highlight the four key attributes that an acceptable CBM for young users in affordable housing should possess: the incorporation of a certain proportion of reused materials, provision of green facilities, availability of furniture services, and effective energy-saving and waste management. Furthermore, young users are willing to allocate 2.5–5% of their monthly income to support the implementation of CBM, which is beneficial for the adoption of CBM in ongoing affordable housing projects worldwide. The attribute preferences of young users in Taiwan and the Netherlands differ due to varying socio-economic characteristics, sustainability attitudes, and distinct cultural patterns within both societies. Consequently, this paper offers recommendations for governments to expedite the development of CAH.