Analysis of housing commoditization in Iran's housing market

Subject Areas : Urban planning

Abolfazl meshkini ¹ , Mohammad Reza orogi ² , Somayeh Alipour ³

1 - Associate Professor of Geography and Urban Planning, Tarbiat Modares University
2 - PhD student, geography and urban planning, Tarbiat Modares University, Tehran, Iran
3 - Post-doctoral researcher of Tarbiat Modares University

Received: 2022-11-26 Accepted : 2023-02-16 Published : 2023-01-21

Keywords: "Capital goods", "Housing price", "Consumer goods", "Inflation",

Abstract :

Housing is considered the most important asset of the household and it is a basic and irreplaceable commodity that, due to its price, accounts for a significant share of the household's income, and its owners, in order not to accept higher risks in other financial markets, They take care of it. Therefore, housing is considered a consumable and a capital item that cannot be removed from the budget of households. Turning housing into a capital good instead of a consumer good is one of the problems in the field of housing at the moment, which brings to mind the question, why has housing become a capital good in Iran? The answer to this question is the main goal pursued in this article. In order to answer this question, the study of documents is the basis, and by analyzing and describing the available materials, regarding the commodification of housing in Iran, as the statistical community of the research, it has been investigated. Since the housing price and most of the considered variables are endogenous, therefore, in this research, the vector self-explanatory model (VAR) has been used. Surveys show that; The matrix of correlation coefficients between the variables is positive, but it has a negative relationship with the exchange rate and the bank interest rate, and the highest correlation coefficient with the housing price is the gross domestic product. Also, the cause and effect relationship between the variables shows that housing prices have a mutual cause and effect relationship with stock variables (S), bank interest rate (R), sector credits function (CRE) and gross domestic product function (GDP) and with rate variables. Currency (EX) and coin price (G) do not have a clear cause and effect relationship, and they also have a one-way relationship with the variables of construction cost (C), liquidity volume (M) and inflation rate (INF), which shows that the investigated variables They affect the price of housing and its transformation into a capital good, and by managing each of these indicators, housing can be turned into a consumer good.

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