Housing demand

Like other economic markets, housing market is comprised of supply and demand dimensions and equality of supply and demand makes the housing market balanced. The aim of this paper is to investigate the characteristics of housing market of Tehran city and some deficiencies of this market with fundamental – applied methodology. The variable studied here is the saleable residential unit with minimum 50m2 area which is obtained after statistical evaluations of housing price for many years and estimation of the loans and deposit of families in different income levels. Results reveal that problems of housing market can be attributed to lack of appropriate planning in housing building and supply (in quantity, area and geographic location), decreasing purchasing power of people various income levels as a result of misfit of increase in income and price of housing, low demand of families and finally, limited income groups for purchasing appropriate housing.