Abstract for: Housing Affordability: A study of real estate market in Iran

In this paper by means of a simple system dynamics model, we analyze the dynamics of housing affordability in the context of real estate market of Iran. To do this we define an affordability index according to Iran's economic situation and show that in the absence of effective financial infrastructures, this index declines over time. To confront this problem, we analyze supply-side and demand-side housing policies. Moving into industrial methods of construction and increasing the volume of the construction loans are among supply-side housing policies. Also focusing on macroeconomic policies to reduce economic fluctuations and risk of investments in other markets is among demand-side housing policies.