Effective Factors on Housing Tenure Choice in rural areas of Iran

Housing is one of the most important basic human needs and as the worthy asset of the household is the determining factor in economic success, formation of personal identity, and social status of people. Also, it can play an important role in macroeconomic and household dimensions and is provided in two forms: rent and real. Since home ownership is the biggest financial investment in the lifetime of many households, rental housing is preferred in decisions. On the other hand, the amount of rent in villages has increased significantly in the last few years. Several factors are effective in housing tenure choices (real or rent) that identification of these factors and their effectiveness can help to make policy, housing sector planning, and increasing the welfare and economic level of society. In this study, by applying the Probit model and using sample events related to the budget of rural households in 2020, housing tenure choice has been studied. The results show that permanent income, age, marital status, employment of the head of the household, and size of the family increase the probability of home ownership in the villages, and the level of education of the head of the household increases the probability of renting.