Demographic and Economic Factors that Affect the Housing Demands in Jordan

The main aim of his study is to determine Demographic and Economic factors that affect the housing finance demand to meet the housing needs and develop the performance of housing sector in Jordan, depending on the available statistics from the Department of Statistics, Central Bank of Jordan, and the annual reports of financial companies that provide housing loans. The econometric analysis has been used, which depends on the regression analysis of dependent variables on independent variables using multiple linear regression model. In addition to the correlation analysis between all dependent and independent variables to exclude the independent variables that show a strong relation between them and to determine the most effective factors in the housing finance demand. Also, the descriptive analysis method has been used depending on relative frequency and histogram chart in analyzing the results of the questionnaire. And the following conclusions have been obtained: l- The demographic factors consider the main identifications of housing demand, where the results show a positive relationship between the population growth rate, number of households, net migration, and urbanization ratio from one side and the housing demand from the other side. 2- The housing finance demand depend on a group of economic factors as follows:- a- There is a negative relationship between the annual household income, government debt ratio, and money supply from one side and housing finance demand from the other side. b- There is a positive relationship between the housing demand, construction price index, and demand deposit size from one side and the housing finance demand from the other side. 3- Housing finance demand determined by a set of qualitative factors represented by; short-term of the loan, high interest rate, required guarantees, social and religion cultures, the existence of a floor of the loan, and the high desire of individual and households to hold cash money.