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Urban Studies, Vol. 33, No. 7, 1141-1154 (1996)
DOI: 10.1080/00420989650011555

Demand for Housing Attributes in Developing Countries: A Study of Pakistan

Hafiz A. Pasha

Institute of Business Administration, University of Karachi, Karachi-75270, Pakistan

Mohammad S. Butt

Applied Economics Research Centre, University of Karachi, Karachi-75270, Pakistan

The paper has applied a conventional framework of analysis of implicit markets to determine the characteristics of demand for housing attributes of quantity and quality in the urban areas of a large, low-income developing country like Pakistan. Income elasticities generally appear to be low, although somewhat higher for indicators of quality. Own-price elasticities are high while the cross-price effects with respect to different attribute prices reveal the high degree of substitutibility among these attributes. Methodological innovations in the paper include the use of a weighted factor score for the measurement of housing quality and incorporation of the effect of changes in non-housing prices on demand for housing attributes. Given the large magnitude of own-price effects and the negative impact of a rise in non-housing prices, it appears that in the face of slow growth in real incomes and double-digit inflation in Pakistan residential overcrowding conditions are likely to worsen over time.


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H. A. Pasha and M. S. Butt
Demand for Housing Attributes in Developing Countries: A Study of Pakistan
Urban Stud, August 1, 1996; 33(7): 1141 - 1154.
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