An insight into the residential preferences of young people on the rental housing market

Innovative living concepts for urban millennials are entering the global market rapidly with the purpose to meet the demand and to meet the residential preferences of this group. However, urban millennials have higher expectations for their housing than their baby-boomer parents. This research therefore focuses on the residential preferences of young people in order to understand their needs and their willingness-to-pay for different types of housing alternatives varying in the presence and absence of different housing-related and building-related facilities. For this purpose, a stated choice experiment was designed and data of young people was collected via an online survey. The analysis of the data was executed by a Multinomial Logit Model and the results show that size and price are the most important significant factors for young people when making a housing decision, followed by different housing-related and building-relate facilities. The model even shows that there are differences in preferences among different socio-demographic groups and the model has estimated the willingness-to-pay expressed in euros for all attributes included in choice alternatives in the survey.