Estimation of the Housing DemandFunction for the city of Qom, using the Hedonic Price Pattern

Subject Areas : Applied Economics

فرهاد  Ghafari ¹ (ندارد)
طاهره  Ovasi ² (مسئول مکاتبات)

Received: 2013-01-27 Accepted : 2013-03-16 Published : 2012-12-21

Keywords: Demand for housing, Hedonic Price- Fragmental Data,

Abstract :

The objective of this research is to estimate the demand for housingin the city of Qom. We apply the Hedonic price pattern methodology and study household’s preference for various features of residential units. Based on our approach, the value of a residential unit is influenced by its own specific as well as environmental characteristics.The data is provided bythe Qom municipality and Statistic Center for the year 2011. Based on the information from 497 households, the results of our study indicate that the specific features of a residential unit, such as the size of land, number of rooms and the quality of material used, are the most determinants of its price. Furthermore, the location and neighborhood features such as the width of the alley in which the house is located, distance from the nearest school, park, and mosque are also significant.JEL Classification: C81,R21