International Journal For Multidisciplinary Research

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A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 7, Issue 4 (July-August 2025) Submit your research before last 3 days of August to publish your research paper in the issue of July-August.

Housing Finance and Economic Growth in Thiruvallur District

Author(s) Dr. SUNDARI D
Country India
Abstract This study examines the relationship between housing finance and economic growth in Thiruvallur District, employing a regression analysis approach. Housing finance, an essential component of the financial sector, significantly impacts economic growth by stimulating construction activities, generating employment, and enhancing living standards. Thiruvallur District, a rapidly developing region in Tamil Nadu, India, presents a unique case for analysing these dynamics due to its mix of urban and rural characteristics and its strategic proximity to Chennai.
The research employs a quantitative methodology, utilizing secondary data from various governmental and financial institutions over a ten-year period (2013-2023). Key variables include the amount of housing loans disbursed, interest rates, GDP growth rate, employment rates in the construction sector, and property prices. The study also considers macroeconomic factors such as inflation, population growth, and urbanization rates to provide a comprehensive analysis.
The regression analysis reveals a positive and statistically significant relationship between housing finance and economic growth in Thiruvallur District. Specifically, an increase in housing loan disbursements is associated with higher GDP growth rates, suggesting that housing finance acts as a catalyst for economic development. The findings indicate that every unit increase in housing finance leads to a proportional increase in the district's GDP, highlighting the critical role of accessible and affordable housing finance in fostering economic growth.
The study uncovers that lower interest rates and higher employment rates in the construction sector amplify the positive impact of housing finance on economic growth. This underscores the importance of favourable monetary policies and robust construction industry performance in maximizing the benefits of housing finance.
The research also identifies challenges such as housing affordability issues, financial exclusion of low-income groups, and regulatory bottlenecks that impede the optimal utilization of housing finance for economic growth. Policy recommendations include enhancing financial inclusion through targeted housing finance schemes, reducing interest rates, and streamlining regulatory processes to facilitate faster approval and disbursement of housing loans.
In conclusion, the study highlights the significant role of housing finance in driving economic growth in Thiruvallur District. By addressing the identified challenges and implementing the proposed policy recommendations, policymakers can harness the full potential of housing finance to achieve sustainable economic development in the region.
Keywords Housing Finance, Economic Growth, Thiruvallur
Field Arts
Published In Volume 7, Issue 4, July-August 2025
Published On 2025-08-13

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