New dwelling units from the existing housing stock : a location model

The conversion of dwelling structures to produce more smaller dwelling units or fewer larger units from a given residential property is a widespread means of supplying 'new' housing in different size and tenure markets within the inner city. In this paper a conceptual model of conversion is presented in which different income groups compete for available structures. The process of conversion is examined empirically using a random sample of nearly 800 residential properties drawn from the inner urban area of Metropolitan Toronto. The relative importance of changes in demand for different sized dwelling units as well as for different dwelling structures and neighbourhood characteristics is estimated. All three factors are found to be influential in accounting for geographical variations in conversion rates but they differ in relative importance depending on the type of conversion undertaken. The probability of conversion is estimated separately for single and multiunit structures.Connaught Fund Program in Urban Housing Market