Housing market in times of crisis The increasing importance of consumer’s preferences Astrid Kemperman Jos Smeets Ella Stoop
Contents Introduction Research methods for calculating consumer’s preferences Conjoint method Consumer’s preferences via conjoint method Research used on apartment complex in theory Research on the specified apartment Concluding remarks PAGE 2 / Faculty of Architecture, Building & Planning ERES 2010
Introduction Decrease of the number of housing sales Decrease of housing prices Uncertainty of political changes on housing market Transformation from sellers market into buyers market -> more value for money is being asked Importance of consumer preferences will be shown by using an existing apartment complex PAGE 3 / Faculty of Architecture, Building & Planning ERES 2010
Research on consumer preference ERES 2010PAGE 4 / Faculty of Architecture, Building & Planning
Conjoint Analysis A multivariate technique used to understand the structure of consumer preferences for alternatives Include attributes that are: Essential to describe the problem in general Relevant from managerial, planning or policy making perspective Easy to understand Use limited number of attributes (<10, however, more attributes are possible) ERES 2010PAGE 5 / Faculty of Architecture, Building & Planning
Conjoint analysis: measurement Individuals are asked to rank, rate or choose different profiles: Rank: Measure order of preference for alternatives Rate: Measure preference response on scale Choose: Select from (binary) set of alternatives which one you like best ERES 2010PAGE 6 / Faculty of Architecture, Building & Planning
Research on consumer preference Research among households over 55 year with a desire to move house within 5 years Only interested in apartment buildings Decompositional research Use of conjoint choice method PAGE 7 / Faculty of Architecture, Building & Planning ERES 2010
Findings of the results Balcony size bigger than 15 m² Living room size over 50 m² High preference for traditional architecture Price of apartment around € or € Preference for smaller sized apartment complex Preference for services suited for seniors Preference for private parking Choice between most optimal apartment (93%), least optimal apartment (2%) and no choice (5%). PAGE 8 / Faculty of Architecture, Building & Planning ERES 2010
Apartment complex PAGE 9 / Faculty of Architecture, Building & Planning ERES 2010
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Apartment complex - theory 16% will choose moving to apartment E 64% will choose moving to apartment H 20% will not move at all Weakest scores on: Balcony size Living room size (E) Price of apartment (E) Preference for smaller sized apartment complex Preference for services suited for seniors PAGE 13 / Faculty of Architecture, Building & Planning ERES 2010
Apartment complex - practice PAGE 14 / Faculty of Architecture, Building & Planning ERES 2010 Research among households over 55 year who showed interest in the project Compositional research Findings: Balcony size too small (60%) Size of apartment sufficient (84%) Architecture is neutral (52%) Price of apartment is too high (65%) Unfamiliar with services suited for seniors (54%) Way of parking is equally fit as unfit as unfamiliar 18% is interested in buying an apartment
Concluding remarks Decompositional research is good for predicting consumer preference Compositional research is more suited for more in-depth research In times of crisis on the housing market, decompositional research is a good method for predicting consumer preferences PAGE 15 / Faculty of Architecture, Building & Planning ERES 2010