This study investigates the influence of socio-economic variables on the physical characteristics of housing in District 2 of Tehran, an area marked by pronounced spatial and socio-economic polarization. Employing a mixed-methods quantitative approach, including factor analysis and regression modeling, the research develops a composite index titled “Housing Physical Condition” (HPC) to represent the physical status of residential buildings. Social and economic indicators—such as literacy rate, income-to-housing expenditure ratio, and unit density—were analyzed for their correlation with the HPC index. The results reveal that physical housing quality is strongly shaped by both social structures and economic capacities, with indicators like household literacy and housing cost burdens showing significant explanatory power. The study underscores that physical upgrades alone are insufficient for housing improvement; rather, a multidimensional planning approach that integrates socio-economic interventions is critical to addressing urban disparities. The proposed framework offers valuable insights for inclusive urban housing policies in similarly fragmented metropolitan contexts.