Efficiency Measurement of Housing Sector in Iran

The present research provides a critical review of the housing industry efficiency and its future in Iran. Data Envelopment Analysis (DEA) is used to evaluate housing industry performance in different states based on the relevant data collected from Statistical Centres of Iran during 2006-2009. The research found that only 30 percent of the states operate as technically efficient and the average efficiency score obtained by all states is 0.90. Most of the technically efficient states have the opportunity to employ illegally migrated workers of neighboring countries in building construction activities using the advantages of lower level of payments and less commitment to the worker's insurance regulations in the country. Providing subsidy assistance to disadvantaged states and stimulating legal employment of building workers will supplement the government in finding a solution to the current housing problem.