Exploring Rental Housing Market in Kitchener-Waterloo, Ontario

Abstract

Intensification is the key planning policy and growth management approach in Ontario, as well as across most of North America. Under this larger context, the Region of Waterloo, Ontario is building a Light Rail Transit (LRT) to provide alternative public transit option and help reshape land development, with the goal of increasing the development density in core areas, increasing mixed-use development, and curbing urban sprawl. To better understand how the upcoming LRT will influence housing choices and development patterns, this thesis explores households’ location choice decision and perceptions of LRT from a renters’ perspective. From June to November 2016, a random sample of 2912 households renting in Kitchener-Waterloo were invited to participate in a survey on residential location choice, renting behaviours and perceptions towards the upcoming LRT, after which a total of 290 surveys were analyzed. After a descriptive analysis of the survey results, a hedonic model was also developed to investigate the relationship between rental housing prices and corresponding household, residential, neighbourhood and behaviour characteristics. Unlike other aggregate level models, this hedonic model is implemented using individual level household information collected through the customized survey. The structure of rental housing demand is unveiled regarding different resident groups, as well their perceptions and preferences towards different residential and neighbourhood characteristics. Findings from this study could also be applied to inform housing polices, regarding housing development and housing affordability.