The Price You Pay, What Determines the Willingess to Pay for Housing?

Abstract: Housing expenditure is without doubt one of the biggest expenditure posts for all households. By using econometrics to estimate regressions with cross-­‐sectional data including more than 1500 individuals, this thesis examines whether there is any individual characteristics that determines how big a share of the disposable income that is spent on housing each month. The results indicate that different factors affect the share of disposable income spent on housing depending on whether the respondent lives in a Single-­‐family house or a multi-­‐dwelling housing. It’s indicated that housing is a normal good with an increased demand as income rises.