ABSTRACT
The relative price of slum housing and the proportion of dwelling units which are poor quality also depend upon conditions of supply. For properties converted to slum use, rental values will also decline because the converted dwellings contain fewer units of housing services than prior to their conversion. With the fall in demand and quality deterioration, older residents move to newer neighborhoods where the available housing is more suited to their tastes and circumstances. Their places are taken by lower income households, who have less aversion for poorer quality housing than higher-income groups, and dwellings may be converted to smaller units more suitable to the size quarters the lower income groups wish to occupy. While previous research has clearly established that income is one of the most important determinants of housing consumption, other variables have an important effect on the quantity of housing a household consumes.
