Document Type : Research Paper

Author

• Ali Hasanvand

Assistant Professor of Lorestan University Economics Department

Abstract

Housing is a critical economic sector, with its growth positively impacting households. However, rising prices in recent years have reduced household well-being. Using provincial-level data (2011-2021) and a spatial econometric approach, this study examines factors influencing housing price increases. Findings show urbanization and economic growth positively affect housing prices, while financial development’s spillover effects are negative, highlighting the role of traders in price determination. Industrialization showed no direct impact, but its spillover effects were positive, emphasizing the service sector's influence. The study confirms housing price divergence and recommends enforcing tax laws on vacant properties and increasing housing sector financing to improve Iran's housing market.

Keywords

• Housing price
• credit ratio
• spatial econometrics

Main Subjects

• Housing Economy