The term “marriage crisis” is becoming more visible in Iranian public and private debates
and constitutes a major issue in political discussions at the time of elections. The increasing
working age and young population in Iran have difficult times to establish family. This has
increased the political concerns of addressing the basic needs of young Iranians. This study
examines the link between housing costs and marriage rate in Iran controlling for other
relevant economic determinants of marriage. Using a panel of provinces of Iran over a
period of nine years (2003-2011) and applying generalized method of moments (GMM)
estimator, our results reveal that there is a negative relationship between housing costs
and marriage rate. We also find that government special loan for marriage, and lower level
of unemployment rate increase marriage rate. Finally, increasing spending on higher
education has a dampening effect on marriage rate.