Decisions to Renovate and to Move
by Pnina O. Plaut and Steven E. Plaut,
published in the Journal of Real Estate Research
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The following article has been included in the TARF website with permission from The American Real Estate Society. The article, Decisions to Renovate and to Move by Pnina O. Plaut and Steven E. Plaut, was published in the Journal of Real Estate Research in Volume 32, No. 4, 2010. Author contact information is found at the end of the article.
Housing renovation is the main alternative means of housing supply besides construction of new housing. Relatively little is known about the factors that affect decisions by households about whether to renovate and which sort of renovations to undertake. These questions are explored empirically. Separate analyses are conducted of the decision to undertake ‘‘major structural renovations’’ as opposed to other sorts (such as remodeling the kitchen or bathroom), and also of the decision to conduct renovations that add to the living space of the housing unit. Financial, household and geographic factors affecting this decision are analyzed econometrically.