Content Details | NUML Online Research Repository

Title Effects of Demograhic and Macroeconomic Variables on Housing Demand in Pakistan

Author(s) Hafsa Naeem

Abstract Housing is the most important and durable asset for any household. It is an essential need of humans. Housing demand is derived demand from leisure demand. The main objective of this study is to investigate the effect of demographic and macroeconomic variables on housing demand in case study of Pakistan. For this purpose, study uses time series data from 1980 to 2019. This study uses housing demand as a dependent variable and three age brackets for demographics variables (Agebracket1, Agebracket2 and Agebracket3), per capita real GDP, male unemployment rate and inflation rate are used as independent variables. As study uses time series data, so checking the stationarity for all variables through unit root tests is a prerequisite condition for robust findings and PP tests of unit root are applied and result shows a mixed order of integration of variables. On the basis of unit roots tests, study estimates the model through ARDL bound testing approach of cointegration. In the short run Agebracket1, Agebracket3, male unemployment rate and inflation rate have positive effects on housing demand. While real GDP per capita and Agebracket2 have negative impacts on housing demand. It is because in short run the positive effect of income is not properly channelized in the form of demand for durable goods. In the long run Agebracket1, Agebracket3, real GDP per capita, male unemployment rate and inflation rate shows significant impact on housing demand. The Agebracket2 and inflation rate shows negative impact on housing demand but the agebracket2 is not statically significant. Lastly, CUSUM and CUSUMSQ are also used to confirm the stability. The government should provide the facilities in form of inflation control, job opportunities, and cheap credit facilities to boost the housing demand. It is because at macro level housing demand matters for sustainable growth of economy. Keywords: Housing Demand (HD), Demographics Factors, ARDL, ECM, ADF, PP.

Type Thesis/Dissertation MS

Faculty Management Sciences

Department Economics

Language English

Publication Date 2021-04-16

Subject Economics

Publisher

Contributor(s)

Format

Identifier

Source

Relation

Coverage

Rights