Achieving 'Dream' Housing; 70% of Tehran Households Suffer from Housing Poverty

The Tehran City Council reported that 70% of households in Tehran are experiencing housing poverty and inadequate living conditions. According to Donya-e-Eqtesad, the index for the expectation of homeownership in Tehran was 22 years in 2005, which has now increased to 112 years, effectively putting housing out of reach for the lower and middle classes. The report also indicated that the share of housing in household expenses has risen from 33% in the 2000s to over 50% currently, leading to more than 70% of Tehran households facing housing poverty. News Online highlighted that the housing and rental markets experienced a 3.3% inflation rate in the past month. Housing was identified as the second non-food commodity with the highest inflation in August 2023. According to Donya-e-Eqtesad, the current growth rate of rental costs is more than twice the 'historical inflation in this national market' and 1.9 times the 'government-approved ceiling.' In July, the rental market saw a 'slight decrease' in the speed of rental cost growth, but in August, the rental price index experienced a 'one percentage point increase.' Alireza Mohili, a representative of the Minister of Roads and Urban Development, stated that currently, over eight million households in Iran are renters. Experts say that as the share of housing in household expenses increases, families must spend significantly more of their income on housing than the global standard, consequently reducing their spending on other essential living quality aspects such as food, clothing, and even education. Ebrahim Raisi, the President of the Islamic Republic, and his close associates have repeatedly promised to 'build one million houses per year' since the presidential election campaign in June 2021 and after his cabinet took office, but no report has been published regarding the fulfillment of this promise.