Demand for Housing units in the Libyan Economy: Case Study of Benghazi City (1970-2002)

Abstract

This study aims to follow up the most important inhabitation and housing developments in Libya. It also endeavors to specify and get acquainted with the economic , social, demographic and political factors effecting on the dwelling demands by means of analyzing the period ( 1970-2002). For that purpose, the method of quantitative analysis was used by establishing and measuring of a proposed function pattern representing the demand on dwelling within the city of Benghazi throughout the period .(1970-2002) This pattern is based on the supposition, that the number of building licenses is a criterion of the demand on dwelling, which is determined by a group of economic variables (The Gross Domestic a product as a criterion income, costs of construction and building as a criterion of price), demographic factors (number of inhabitants), in addition to the pictorial variable and tine factor. The study came to the conclusion, that the income and price elasticities are less than an integral one. That indicates to the fact that the variation in the income / price variable dose not effect heavily on the demand on dwelling. This means, that individuals do not rely on their incomes in obtaining dwelling, then their levels of income are very low, if compared with the cost of construction and building. The results reached by the study show, furthermore that factor of inhabitants number is one of the most important factors effecting on the function of the demand on dwelling. The degree of response of the demand on dwelling to the factor of inhabitants number is high, i.e any variation in the number of inhabitants leads to a great effect on quantities required for dwelling. Therefore, these results are of great importance in regard of the necessity of determining and setting up of more effective housing procedures and policies.