The main objective of this study is to examine and analyze the effects of key industrial factors on housing prices across Iranian provinces. For this purpose, the spatial econometrics method has been employed, enabling the investigation of spatial dependence that may exist among the provinces of Iran. In this research, the effects of factors such as provincial market power, returns to scale, and transportation costs on variations in housing prices have been estimated and analyzed for the period 1997–2023. The estimation results confirm the existence of a significant and substantial inter-provincial spatial dependence, with the corresponding coefficient equal to 0.822. The findings further indicate that both market power and transportation costs have positive and statistically significant effects on housing price changes, with coefficients of 0.134 and 0.210, respectively. In contrast, the returns to scale factor exhibits a negative and statistically significant effect on housing prices (at the 10% significance level), with its coefficient estimated at –0.365.