Determinants of Growth in Multiunit Housing Demand since the Great Recession: An Age-Period-Cohort Analysis

Abstract

growth in multiunit housing starts has been exceptionally strong and sustained. In this study, we examine empirical evidence for three possible explanations, namely, the passage of Baby Boomers into senior years, the depressed economic conditions, and rising preference of recent birth cohorts for residing in urban cores. Applying Age-PeriodCohort analysis to census data on multiunit housing occupancy from 1970 to 2010, we find evidence to support the explanations that a sharp increase in demand from Millennials drawn to urban cores and retiring Baby Boomers are contributing to the growth in multiunit housing starts. The results provide weak evidence of a negative relationship between depressed economic conditions and demand for multiunit housing starts. Over the long term, demand for multiunit housing can be expected to moderate as a result of the projected aging of the population.

About new aspects of the development of the market of mini apartments in Ukraine

“…Based on GIS analysis, we can conclude that the cost of 1 m 2 of mini apartments depends on the investment attractiveness of the regional center in Ukraine [9,13]. This information confirms the presence of a multifactor component and the investor's interest depends not only on the buyer's demand for the acquisition of real estate in the city [20][21][22]. It is necessary to pay attention to the stability and a rating indicator on investment rating of a city [10-12], [16].…”

“…Houses with mini apartments exist practically in all parts of the city. In urban planning, it is necessary to consider the development of this market segment and its impact on various social groups of the population [3,15,20]. For example, developers in Kharkiv are building the following residential complexes with mini apartments: "Vorob`yovi Gori", "Alekseevskiy Akvarali", "Bestuzhevsky Sadi", "Uytniy Dvorik", "Eloviy Dvor", "Caramel" and other medium and small projects.…”