Macroeconomic Determinants of Housing Finance in Pakistan
DOI:
https://doi.org/10.47067/real.v5i4.286Keywords:
Interest rate, Wholesale Price Index, Per-capita Income, Urbanization, Housing FinanceAbstract
The concept of human welfare cannot be imagined without housing as it is one of the basic needs of human life. It is alpha and omega for social inclusion and standard of living. The persons need a house for a variety of reasons including protection, security, space and other services and utilities attached with the houses. The people who do not have adequate housing facilities may encounter many pitfalls. This study explains the macroeconomic determinants of housing finance in Pakistan based on quarterly data ranging from 2005Q1 to 2018Q4. Vital factors that influence the housing finance in Pakistan are interest rate, per capita income, urbanization and wholesale price index. Findings expose that the interest rate and wholesale price index are negatively while per capita income and urbanization are positively related to housing finance of Pakistan.
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