Abstract: Household income and education cost impact on private demand for higher education. This study is dedicated to a research report in which the income and own-priceelasticities of urban households demand for higher education are estimated in different income groups for the period 2007-2012 using the almost ideal demand system, showing higher education is a normal good. Different amount of income elasticities showed that higher education for households of the seventh to tenth income groups is a necessity good while for other income groups is a luxury good. The coefficients for the own-price elasticity are negative and consistent with the demand law. Households demand for higher education in the 1st-6th income groups is elastic (sensitive) and in the seventh to tenth groups is inelastic. Therefore, it can be expected that if the price of higher education increases or the household income decreases equal to 1% for the first to sixth income groups their demand for higher education will reduce more than 1% while the percentage of reduction in households demand belonging to seventh to tenth income groups will be less than the percentage reduction in their income or increasing the price of higher education.