An understanding of consumer behavior is essential in planning and programming thernmarketing system. Housing is the layout and development of residential units in whichrnpeople can live in pleasant, peaceful, sustainable and healthy surrounding with social,rncultural and recreational facilities and communities maintaining a decent life, a vibrantrnlocal economy and a healthy community. It is a social unit planned on neighborhood orrncommunity Principles and is an integral part of the nationâ€™s economic development.rnThe objective of this study is to determine the psychological and economic factors thatrninfluence the consumer buying behavior in the selection of real estate in Addis Ababa.rnThe theory explained various consumer behavior models and their arguments. Arnquantitative research design has been selected as the most suitable method to collect therndata from the targeted respondents for this study. A response of 390 sets ofrnquestionnaires has been distributed and 382 questions were received from thernrespondents. Descriptive frequency and percentage have been conducted to explore therndemographic characteristics of the target respondents. Using Multiple Linear Regressionrnmodel, this research is useful to examine the relationship between the independentrnvariables to the dependent variable (consumer behavior) after meeting all the givenrnassumptions successfully. Statistical Package for Social Science (SPSS) version 22 wasrnused to generate the actual results. The result has identified that motivation, attitude,rnfamily income and saving as a basic influencing factors and examines each factor on thernextent of their effect on consumer buying behavior while selection real estate. Thernfinding reveled that all considered variables had a positive significant effect exceptrnmotivation