the Impact of municipal taxes on housing supply in Tabriz ten metropolitan districts

Document Type : Original Article

Authors

1 Ph.D Student, Department of Economics, Faculty of Economics and Management, Tabriz University, Tabriz, Iran

2 Professor, Department of Economics, Faculty of Economics and Management, Tabriz University, Tabriz, Iran,

Abstract

Currently, urban management in most Iranian cities has become dependent on the most unstable source of revenue—construction fees—to meet its financial needs. Housing-related charges, especially in the past decade and in the country’s major cities, are regarded as an influential factor affecting both the price and supply of housing.
In recent years, due to the rapid expansion of Tabriz city, Tabriz Municipality divided the city into ten independent districts to provide proper urban services to citizens. These ten districts of the Tabriz metropolis possess diverse features and capacities in terms of area, population, urban fabric, and other aspects, which significantly influence the housing supply within each district. Therefore, the main challenge concerning the varying housing supply across Tabriz’s ten districts lies in examining the factors that affect housing supply.
This study examines the factors influencing housing supply by the ten districts of Tabriz metropolis, with an emphasis on municipal charges related to housing. Ultimately, it evaluates a model based on the factors affecting how municipal fees impact the housing supply
To achieve this goal in this research, 68 identified factors affecting housing supply (based on previous researchers’ findings) were used to develop a model of factors influencing housing supply, utilizing the Grounded Theory approach. The developed model includes causal conditions, intervening conditions, contextual conditions, and strategies. Finally, the constructed model was tested using Structural Equation Modeling (SEM). For this purpose, a sample of 156 housing sector experts and a 5-point Likert scale questionnaire were utilized.
Factors such as the increase in construction costs, reduction in construction discounts, corruption and administrative violations, improper use of municipal budgets in construction, lack of attention to renovating dilapidated buildings and urban structure, lack of coordination between construction and regional levels, excessive focus of mass builders on specific areas, rising land prices, absence of precise field studies to understand the city and existing problems, inadequate crisis management, lack of meritocracy in member selection, and so on, are among the most significant factors affecting the increase in housing prices.
Municipal taxes also affect the housing supply through certain other factors.

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Articles in Press, Accepted Manuscript
Available Online from 22 June 2026
  • Receive Date: 27 October 2025
  • Revise Date: 07 November 2025
  • Accept Date: 01 December 2025