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Nowadays, the effect and importance of housing and its role in Iran’s economy cannot be underestimated. Housing as a fundamental and basic need for Iranian households is not just a shelter, but is considered as a crucial asset. It has a superior financial value as well. Expansion in urbanization, especially in Tehran, regarding its financial and political importance has contributed to this situation. In this paper, using time interval data between the years 1981 to 2005, the casual relation between variables which affect housing in urban districts through analyzing and monitoring Granger-Hissao, Simes causality test, have been utilized and its impacts are examined in self-regression model. The results indicate that there was a causality relation between price of house, bank loans, number of households and their incomes. Nevertheless, house price had the most impact on instabilities of housing during this period.

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The purpose of this paper is to examine the relationship between bank loan rate and housing prices in Iran. For this purpose, some VAR models have been applied, using the following variables: real loan rate, money supply (including the high powered money and the liquidity), GDP, housing services index, and the number of licenses for new houses. The results show that a reduction in the loan interest rate will increase the demand for housing sector because of reduction in cost of borrowing from banking system in order to invest in this sector. In other word, the research findings have implied a negative relationship between bank loan interest rates and housing prices. The results have also revealed that financial repression in the form of bank loan rates control policy induces more investment in housing sector and results into resource depletion of banking system.

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Due to the rapid modernization process, we can see the inefficiency and obsolescence of urban textures in Isfahan alike the most Iran’s cities. Hence, renovation development of old textures should be one of the main goals in modernization of Isfahan. Analyzing the widespread dimensions of housing and identifying the ranking ways of different attributes of residential units by consumers is the most important step for being successful in housing projects. Since housing attributes are the non-marketed goods, we need to use non-market evaluation method to evaluate them.  In this paper Choice Experiment Method (CEM) has been used to evaluate and determine the consumer willingness to pay for various housing attributes. For this purpose, one of the old textures of Isfahan was selected and a sample of households living in that area was randomly drawn with 120 observations. Data was collected using choice experiment questionnaires and analyzed using STATA and EXCEL softwares. The results show that choice of residential unit is a function of 7 attributes including land area, quality and type of materials used in residential units, neighborhood security, access to major city centers, exemption from charge payments for construction, the amount of loan paid for construction and price of residential unit. Based on the results, the most effective variable is the land area; and residents have a high willingness to pay for this attribute rather than the other attributes.