A crisis that triggered change: How the Corona crisis impacted (aspiring) homeowners’ housing preferences

Abstract

The Corona crisis highly affected socio-economic circumstances, and this was expected to have changed housing preferences. Understanding what needs to be built in quality in addition to quantity is key to a sustainable housing market. Hence, this thesis researched whether and how housing preferences of (aspiring) owner occupiers in the Dutch housing market have changed due to the Corona crisis. The change in housing preferences was researched through a survey inquiring expressed stated preferences for dwelling attributes. Quantitative and qualitative data of 1458 useful respondents combined showed that due to Corona, for 17.8% their housing preferences changed for one or more housing attributes, and thus their preferred dwelling had changed. Per attribute, an average of 3.4% of the respondents changed their preference. Most changes relate to working from home, which severed the link between the home and the workplace, enabling as well as causing people to move further away, and which necessitates space in and outside the dwelling. Accordingly, the crisis has had the biggest effect on the preferred number of rooms in a dwelling. The number of rooms is imperative, not the size. The apartment decreased in popularity, and the preference for dwelling types with a garden increased. The functionality which respondents seek of their outdoor space are enabling social possibilities, providing entertainment and supporting mental health. The living environment for which people are willing to move further away should provide greenery, nature nearby, space, tranquility and privacy. It appears that due to the crisis the willingness to pay has increased as housing has increased in importance. The Corona crisis has had more effect on the housing preferences of multi person households with children than on other households. The crisis has had an excessive effect on households living in highly urban places. Four out of five respondents expect their changed preferences to be permanent, in particular regarding the number of rooms, the dwelling size and the preferred outdoor space. The preferred price range is expected to change again as the micro and macro level financial circumstances change. It needs to be kept in mind that this regards expectancy of respondents and thus regard uncertainties. The results need to be interpreted with caution as the data suggests a discrepancy in the level of ideality or reality which respondents have conjugated in their expressed preferences. Lastly, the effect of Corona on housing preferences might be bigger than currently observed, since identifying Corona as the cause for changing preferences seemed to be difficult when the preferences concerned diffuse attributes. Additionally, the current extremely high macro level constraints constrain respondents to the point where their new preferences might not be able to manifest.