Intra-urban residential mobility and property markets: Theory and evidence

Mobility has wide-range impacts on the financial management of property issues, such as consumption and investment. In the literature of residential mobility, household life cycle is widely acknowledged as an important concept. An array of household demographic factors such as age has been repeatedly found to be significant in influencing mobility. Many previous researches offer few verifi able hypotheses or propositions and their results are conflicting. Some of them also suffer methodological inadequacies. This paper is an attempt to rectify this situation. There are two important contributions by the current research. One is a methodology that employs multivariate methods, which fills the gap of previous research. The second contribution is the large census dataset of Hong Kong which is rare in previous studies. The research is conducted under the framework of life cycle models with emphasis on economic and demographic variables of households. Demographic determinants are found to be more important in explaining population mobility among rental households while economic factors are more pertinent for owners. This may be explained by the different strategies adopted by renters and owners in satisfying their housing needs. Renters are envisaged to base their mobility decisions more on demographic factors. Owners, on the other hand, tend to view home buying as an investment as well and hence put more emphasis on economic factors. It is hoped that this research can shed more light on the topic of residential mobility by drawing on the experience of a large population residing in a small place, Hong Kong.