The housing
, as one of the main drivers of the economy, has been at the centre of the attention of different stakeholders in the recent century. Different government policies,
's cultures and economical circumstances will lead to different approaches of citizens toward housing. Following I will elaborate that, how uncertain housing markets could be one of the possible causes for
unpleasant situation, in which the citizens had to try to buy a
rather than
it.
with, the most simple reason for
preference that comes to my mind is the unstable housing
, especially when renting is not affordable.
, some countries, like Iran, with distressed economies, so accelerated the
costs that without owning a
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of a household's average budget shall be allocated to defray
. In case
cost shows an increasing trend in some consequent years, citizens often decide to manage to buy a house through leasing or
, because through
solution not only they will be protected from drastically increasing rental costs, but
they could own the
after repayment period of the
and so it could be as a legacy for their children or even could be used for joining reversed
contracts after retirement.
status of the housing
neither is pleasant nor stable, particularly when excess demand for house ownership exacerbates the situation through a dramatic increase in real estate price and
,
. To exemplify, from 2012 up to four consequent years, the housing
of Tehran, the capital of Iran, experienced skyrocketing rental fees, with nearly 40% annual growth, without appropriate changes in the average salary of Iranian
.
, in 2017 most
moved ahead toward buying houses which led to excess demand and the
increase in housing prices. To have a fair indicator, the float annual interest rate of
bonds hit 48 per cent, which was unprecedented in recent forty years.
has reinforced growth in
costs and presently most economists believe that, though some other externalities have initiated
loop, in case the government does not solve or mitigate it,
could lead to the total collapse of the Iranian housing
.
, I believe
situations in either Iran or other fragile economies, could be named catastrophic situations.
To conclude, neither I nor anyone else could not raise a deterministic answer about the reason behind the preference for
ownership rather than renting,
, drastically increases and the uncertain renting prices could be one of the main cases in that
decide to own a
of renting it.