Determinants Affecting Homeownership for Middle-Income Earners in Libya; A Conceptual Framework

Abstract

Homeownership represents an essential socio-economic milestone for middle-income earners, signifying both financial stability and social security. In transitional economies such as Libya, however, this aspiration is increasingly constrained by overlapping structural, institutional, and social barriers. This paper develops a conceptual framework to examine the determinants influencing homeownership for Libya’s middle-income households, a group often excluded from both state-subsidized housing programs and high-cost private markets. The framework identifies three major categories of determinants: socio-economic and demographic characteristics such as income, education, and employment; housing policy factors including subsidy design, accessibility, and regulatory frameworks; and social capital dimensions such as trust, social networks, and cultural expectations. In addition to these direct determinants, the framework integrates housing affordability and housing quality as critical mediating variables that shape the translation of resources and policies into ownership outcomes. Furthermore, broader social dynamics particularly institutional trust, cultural norms, and urban–rural disparities are considered as moderating influences that condition household decision-making and access pathways. Drawing on Social Capital Theory, Configuration Theory, and Cognitive Theory of Homeownership, the study advances a multidimensional perspective that captures the interplay between structural constraints, social networks, and individual perceptions. By situating middle-income earners at the center of the analysis, the proposed framework contributes to filling an important research gap in both Libyan and broader MENA housing studies. The findings are expected to provide insights for designing inclusive housing policies, strengthening affordability mechanisms, and promoting sustainable homeownership strategies in fragile, post-conflict urban environments.