Title

How Public Transport Modes Availability Affects the Commuting Cost and House Rent of Tenant’s Households in Rawalpindi and Islamabad

Abstract/Description

A deep understanding of housing and travel demands and respective costs based on residential location choice is the most important decision that reflects the behaviour of a household. This article aims to analyse how travel and housing demand and associated costs are effected by urban residential location Choice. Using residential location choice theory, which assumes that households demand for travel and housing is derived by their location choice. While choosing location the monetary calculus of rent and commuting cost also play an important role in deciding to choose where to live, as there is trade-off between rent and commuting cost in monocentric city model. Results of comparative static suggest that transport accessibility to the house will lead to an increase in house rent and demand of housing in that area. Moreover, due to availability of transport, in the form of diverse choice of frequent and affordable public transport, increases the travel demand as commuting cost will be significantly reduced. Similarly, the effect of income on the commuting cost and house rent shows that due to the rise in income, commuting cost and house rent will increase. The results from the Tobit analysis on socioeconomic survey conducted from Rawalpindi and Islamabad, Pakistan provides supportive empirical evidence.

Session Theme

Tourism, Culture and Economic Growth - Session IIB

Session Type

Parallel Technical Session

Session Chair

Dr. Sahar Nadeem Chairperson - Department of Social Sciences & Liberal Arts IBA Karachi

Session Discussant

Dr. Qaiser Munir Professor - Institute of Business Administration Karachi

Start Date

7-4-2021 2:29 PM

End Date

3-4-2021 4:00 PM

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Apr 7th, 2:29 PM Apr 3rd, 4:00 PM

How Public Transport Modes Availability Affects the Commuting Cost and House Rent of Tenant’s Households in Rawalpindi and Islamabad

A deep understanding of housing and travel demands and respective costs based on residential location choice is the most important decision that reflects the behaviour of a household. This article aims to analyse how travel and housing demand and associated costs are effected by urban residential location Choice. Using residential location choice theory, which assumes that households demand for travel and housing is derived by their location choice. While choosing location the monetary calculus of rent and commuting cost also play an important role in deciding to choose where to live, as there is trade-off between rent and commuting cost in monocentric city model. Results of comparative static suggest that transport accessibility to the house will lead to an increase in house rent and demand of housing in that area. Moreover, due to availability of transport, in the form of diverse choice of frequent and affordable public transport, increases the travel demand as commuting cost will be significantly reduced. Similarly, the effect of income on the commuting cost and house rent shows that due to the rise in income, commuting cost and house rent will increase. The results from the Tobit analysis on socioeconomic survey conducted from Rawalpindi and Islamabad, Pakistan provides supportive empirical evidence.