Analysing the influence of factors affecting rental housing location choices in indian metropolitan cities- I : a case of Indore

Abstract

Rental housing plays a crucial role in addressing urban housing demand in Indian metropolitan cities, especially amidst rising migration and limited housing affordability. Despite its significance, the factors influencing tenants' preferences to continue residing in their current rental localities remain underexplored. This study aims to bridge that gap by examining how household characteristics and perceived livability conditions affect rental location choices and tenant retention. Drawing on primary survey data from tenants in metropolitan areas, the research employs a multi-method analytical framework. First, the Relative Importance Index (RII) and the Analytical Hierarchy Process (AHP) are used to evaluate the importance and satisfaction of various livability factors from both tenant and expert perspectives. These findings are then integrated into a TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) analysis to rank areas based on overall livability. Subsequently, a Binary Logistic Regression model is applied to statistically identify the most influential factors affecting a tenant’s decision to stay or relocate. The study concludes that improving livability conditions at the neighbourhood level—particularly in rental-dense areas—is essential for fostering a stable and inclusive rental housing market. It emphasises the need for targeted policy interventions that prioritise the needs of low- and middle-income tenant groups. These insights are timely and relevant for shaping comprehensive rental housing strategies under state and national frameworks such as the Draft Madhya Pradesh Rental Housing Policy and the Affordable Rental Housing Complex (ARHC) scheme. Ultimately, the research provides actionable evidence for urban planners and policymakers to enhance housing security, satisfaction, and sustainability in India’s evolving urban landscape. Keywords - Rental Housing, Tenant Preferences, Livability Factors, Metropolitan Cities, Affordable Rental Housing, Tenant Retention, Urban Livability, Low- and Middle-Income Groups