This research demonstrates that the structure of the neighbourhood housing stock and the type of economic zoning in the local land-use plan can be linked to the location pattern of local firms. However, the research also shows that firms do not collectively prefer the same set of location factors. Consequently, when studying the location behaviour of firms in urban residential neighbourhood it is necessary to differentiate between firms housed in residential properties opposed to firms located in commercial properties. Firms in commercial properties largely confine to classical economic location factors. For home based-based businesses however, the incorporation of work-lifestyle characteristics, rather than the explanatory variables more commonly used in locational analysis, seems to provide an explanation.
