Factors influencing residential location choice in South Africa: exploratory factor analysis (EFA) and confirmatory factor analysis (CFA)

Abstract

Abstract This paper employs a quantitative approach, in which a structured questionnaire containing 90 indicator variables identified from literature was administered to a total of 266 households in South Africa. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were utilised in analysing the collected data, with goodness-of-fit based on a two-index strategy used in determining model acceptability. The SEM results showed that all eight identified exogenous (independent) factors (demographic characteristics, dwelling unit features, neighbourhood features, services provided by the government, household self-congruity, functional congruity, green building features and stakeholders’ relations) had a direct positive and significant influence RLC in South Africa. The general hypothesis that the choices of households in choosing where to reside or stay are a product of the direct influence of the exogenous variables in influencing RLC in South Africa is proven. This suggested that all eight (8) variables included in the model are the most significant determinants of the RLC in South Africa.