Document Type: Research Paper
Associated Professor of International Economics in University of Tarbiat Modares
phD Candidate of economics in tarbiat modares university
his study investigates the factors affecting the demand for new residential buildings in urban areas of Iran during 1976-2010. The demand function for new residential buildings in urban areas was estimated and then the existence of a long-run relationship among variables of this function was studied using the Bounds testing of the Autoregressive Distributed Lag Co-integration procedure. The test confirmed a long-run relationship among the variables, so the coefficients of the short-term and long-term demand for new residential buildings were estimated. The results show that the average income of urban households has the biggest impact on the long-term demand of new residential buildings and its sign is positive. In the short-term, the biggest impact on the demand for new residential buildings is the average cost of constructing a residential building, with a negative impact on the demand.