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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Effect of Municipal Toll and Connections Cost on Housing Prices in Different Areas of the Isfahan City

Hossein Ostadi , Vahid Mahnam

http://dx.doi.org/10.6007/IJARBSS/v4-i9/1129

Open access

The growing urban population in developing countries with restrictions on the provision of housing becomes one of the major problems of municipalities to provide services required and urban infrastructure such branches are different. In this study the municipal toll and connections cost of various organs such as water, electricity, gas, telephone over the period 1390-1380 based on ordinary least squares regression has been evaluated using a cost function models and are examined inequalities in housing prices in different areas of the city. According to the results of the study variables, building materials prices, fire insurance and labor prices in the housing sector have positive and significant impact on housing prices in different areas of the city. In other words, the rise in prices of building materials in housing prices, wages, all prices in variable tariffs and duties to permit residential construction will increase the cost of housing facilities granted by banks in different regions that all of which leads to a decrease in supply and an increase in housing prices in these areas. On the other hand the increase in population has led to an increase in housing demand in the region and thus the price of housing will increases. Also, inflation reflects an increase in the cost of housing in the city and as a result housing prices will rise. Other tariffs affecting housing prices have significant positive effect on fire insurance and housing prices in different areas of the city.

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