Abstract
M. Comm.
The aim of the study is to estimate the demand function for housing in South Africa
(for the period 1989 to 1998). It is important to study the housing demand as housing demand contributes positively towards economic growth and economic stability.
The main findings in chapter five show that all the estimated parameters have a
significant role on the demand for housing loans in South Africa, as approved by
multiple regression results. However, real interest rates have a more significant impact
on the demand for home loans.
The study therefore asserts that the real interest rates must be as low as possible as a
way of stimulating housing demand, thus providing investment and in turn there will be
an increase in economic growth. The study further and finally asserts that taxation
must be decreased, as a way of stimulating disposable income thus there will be an
increase in investment spending.