Housing tenure and housing demand in Colombia

"Using the 2003 and 2008 Quality of Life Surveys, we identify the factors that affect housing tenure decisions in Colombia and explore the determinants of the demand for rentals and purchases. Variables affecting the choice between buying and renting include civil status, education, age of the household head, size of the household and whether the household resides in an urban area. Households with higher income are more likely to purchase than to rent and the choice of formal housing is positively associated to wealth. Interestingly, households eligible for social housing subsidies are more likely to purchase than to rent and those working in the informal sector are more likely to purchase informal dwellings. Demand is quite responsive to price changes as well as to changes in the price of rental (its closest substitute)."