Studying the Effects of Social and Economic Factors on the Housing Prices in Iran (1972-2013)

In this research, the effect of macroeconomic variables on the housing prices in Iran during 1972-2013 is studied using the ordinary least square (OLS) method. To do this, the effects of following variables on the housing prices are taken into account: urbanization rate, rental rate, per capita income, Maskan bank granted credits to housing sector, property tax, unemployment rate, GDP, government expenditures on housing provision, construction materials’ price index, and the number of issued building permits. As the results show, the urbanization rate, per capita income, Maskan bank granted credits to housing sector, property tax, unemployment rate and the construction materials’ price index have positive effects on the housing prices, while GDP Fluctuations, government expenditures on housing provision and the number of issued building permits, have negative effects on the housing prices.
The housing prices are affected by urbanization rate, per capita income, rental rate and GDP in the first place, and secondly by construction costs. Finally government fiscal and monetary policies have insignificant effects on housing prices.