How does heterogeneity in dwelling type preferences relate to housing and built environment characteristics?

Understanding housing preferences is critical for successful compact city development. However, there is limited research on understanding preference heterogeneity in dwelling type choices. Using the Household Income and Labour Dynamics in Australia survey, this paper identifies the key housing and built environment characteristics associated with changes in dwelling type choice from detached houses to high-density. A latent class choice model captures the heterogeneity of dwelling type preferences within a traditionally low-density city, Brisbane, Australia. Findings reveal six household classes with distinct dwelling preferences: Class 1 (senior households without children with other family members) and Class 2 (couple families with children) in inner-city areas, Class 3 (high-income young households) and Class 4 (low-income households without children) in middle-city areas, Class 5 (low-income families with children) and Class 6 (middle-income young families without children) in outer-city areas. Residential environments with better access to educational facilities encourage Classes 3 and 6 to change to high-density living. Greater land use diversity encourages Classes 2, 3, and 6 to move towards high-density living. The findings can be used to design and improve high-density housing for targeted population groups across inner-, middle- and outer-city areas.