The purpose of this paper is to illustrate how the allocation models widely used in traditional demand theory may be applied to: (1) evaluate future residential location preferences; (2) study the effects of locational preferences on overall urban structure and growth; (3) rank intra-urban places in terms of basic residential locational preferences; and (4) evaluate the cross-locational effects of a substantial change in spatial prices, total growth in housing expenditures, and mortgage costs on household relocation decisions. The model used in this paper is a modified version of the Dynamic Generalized Linear Expenditure System. Metropolitan Toronto, sub-divided into three sub-housing markets (East, Central and West), was chosen for the empirical application of the model.
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