University of Isfahan Urban Economics 2588-4867 10 1 2025 03 21 A System Dynamics Model for Industrial Investment in the Housing Sector Considering Monetary and Non-Monetary Economic Variables A System Dynamics Model for Industrial Investment in the Housing Sector Considering Monetary and Non-Monetary Economic Variables 93 116 29644 10.22108/ue.2025.144611.1311 FA Neda Farkoush PhD student Department of Industrial Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran Arash Hadizadeh Assistant Professor Department of Economics, Qazvin Branch, Islamic Azad University, Qazvin, Iran Sadegh Abedi Assistant Professor Department of Industrial Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran Journal Article 2025 03 08 his study aims to present a comprehensive model for analyzing industrial investment in the housing sector from 2005-2023. The proposed model, developed using system dynamics methodology, incorporates a range of economic factors, including monetary variables (such as inflation, interest rates, and exchange rate fluctuations) and non-monetary variables (such as population growth, urbanization, and migration), along with fiscal, regulatory, and technological policies. The model employs reinforcing and balancing loops to examine the complex interactions among these variables. The results indicate that exchange rate fluctuations and inflation are major deterrents to investment. At the same time, government financial support and the adoption of advanced technologies can enhance productivity and help balance supply and demand. Furthermore, technological advancements play a critical role in reducing construction costs and accelerating project completion. The innovation of this study lies in the development of a dynamic model capable of simulating the long-term behavior of key variables and providing actionable solutions to reduce market volatility and improve sustainability in the housing sector. The findings offer valuable insights for policymakers and planners in making informed decisions to manage investment in the housing industry effectively. his study aims to present a comprehensive model for analyzing industrial investment in the housing sector from 2005-2023. The proposed model, developed using system dynamics methodology, incorporates a range of economic factors, including monetary variables (such as inflation, interest rates, and exchange rate fluctuations) and non-monetary variables (such as population growth, urbanization, and migration), along with fiscal, regulatory, and technological policies. The model employs reinforcing and balancing loops to examine the complex interactions among these variables. The results indicate that exchange rate fluctuations and inflation are major deterrents to investment. At the same time, government financial support and the adoption of advanced technologies can enhance productivity and help balance supply and demand. Furthermore, technological advancements play a critical role in reducing construction costs and accelerating project completion. The innovation of this study lies in the development of a dynamic model capable of simulating the long-term behavior of key variables and providing actionable solutions to reduce market volatility and improve sustainability in the housing sector. The findings offer valuable insights for policymakers and planners in making informed decisions to manage investment in the housing industry effectively. https://ue.ui.ac.ir/article_29644_6b65fb343f15d1c961683fed5e92a620.pdf