Analysis of the Factors Affecting Investment In Housing and Construction in Iran

The housing sector in the economy has had a special place and has always been considered as one of the urgent needs of families. In Iran, these has been a gap between supply and demand of housing and it’s price has increased over the past few decades. In order to inhibit the growth of housing prices and also to provide housing for various strata of society and reducing the gap between supply and demand of housing in Iran, a scientific review of the determinants of supply and demand in this sector is sequired. The aim of this study was to investigate the determinants of investment in housing and construction sector, during the period of 1989 to 2007 in Iran. The results suggest that despite the improvement of investment in housing and construction sector, during economic development plans, investment in housing and building has been sufficient and there is still a large gap between supply and demand of housing and buildings in the country, for many reasons such as low share of public sector investment in the production and supply of housing and low tendency of the private sector and co-operative, for housing investment.