The Study of the Effect of House Price on Fertility Rate in Rural Area's of Iran

The population and its issues are one of the multidimensional and complex issues of human societies, Fertility is one of the important dimensions of the population movement which all countries apply incentive or control policies according to their demographic, social and economic conditions. But then, the important issue that has recently been focused by researchers is the issue of house price and its effect on fertility decisions of family. Therefore, the objective of this research is to study of the effect of house price on fertility rate in rural area’s of Iran during the first quarter of 1996 to fourth quarter of 2015 by using Johansen-Juselius cointegration method. The results indicate that, house price has a significant negative impact on fertility rate in rural area’s of Iran. Given that the majority of rural people’s livelihoods are through farming and animal husbandry, parents in rural areas need more children to help them in these activities. Accordingly, it is suggested that economic policymakers, with proper control of supply and demand factors, would reduce housing prices in rural areas, and subsequently increase fertility in these areas in order to promote agricultural and husbandry activities and increase products.