Context-dependent regret minimizing model of housing choice

In contributing to the state of the art in travel behaviour research in developing stated choice models of decision-making under risk, the aim of the present study is to model residential choice behaviour under risky conditions. The model’s objective is to predict the probability that an individual intends to buy a house of any particular profile, considering the risky context conditions, which prevail in the housing market. More specifically, a binomial random parameters logistic regression was estimated. Results indicate that respondents are less willing to move house when the risk related to mortgage rates, prospects of reselling the house, having a job and reselling the house in the future increases.