Investigating the impact of social capital on housing prices in Iran

Subject Areas : Miscellaneous Categories

Kamyar Fardoust ¹ , Bakhtiar Javaheri ² , Salaheddin Manochehri ³

1 - M.A. in Economics, Department of Economics, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran, [e-mail].
2 - Associate Professor, Department of Economics, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran, (Corresponding Author) [e-mail].
3 - Assistant Professor, Department of Economics, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran, [e-mail].

Received: 2025-05-10 Accepted : 2025-06-11 Published : 2025-07-19

Keywords: Housing prices, social capital, dynamic ordinary least squares method, Iran,

Abstract :

Housing prices, as one of the most important economic and social indicators, directly affect the quality of life and purchasing power of households. Increasing housing prices can lead to social inequalities, reduced access to adequate housing, and increased economic pressures on households. Therefore, examining the factors affecting housing prices and adopting appropriate policies to control them is of particular importance in urban planning and sustainable development. Social capital can affect housing prices and should be considered as a key factor in decisions related to purchasing and investing in the housing sector. The main objective of the present study is to investigate the effect of social capital on housing prices in Iran during the period 1991 to 2022 using the Dynamic Ordinary Least Squares (DOLS) method. The results of this study indicate a negative and significant effect of the social capital index on housing prices. The results show that social capital and exchange rate (USD) have a negative and significant effect on housing prices in Iran, which is -0.43 and -5.55 percent, respectively. On the other hand, a one percent increase in the variables of gold price and economic growth increases housing prices by 0.27 and 5.74 percent, respectively. In this study, the total stock index did not have a significant effect on housing prices.

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