Forced Change in Housing Preferences; Poverty Has Brought House Sizes Below 40 Square Meters

The increase in housing prices in Iran has led to a more severe housing crisis, with media reporting a forced change in people's preferences towards homes of 40 square meters or less. The newspaper 'Donya-e-Eqtesad' reported on Tuesday, November 7, that statistics indicate a record number of residents living in homes of up to 40 square meters in the capital this year. The report states that the share of 'tiny' homes with an area of up to 40 square meters in transactions in Tehran has increased from 3.3% in 2018 to over 5.2% this year. This phenomenon can be traced back to housing inflation, where, according to the Statistical Center of Iran, the average price per square meter of an apartment has risen from 6.2 million tomans in spring 2018 to over 80.8 million tomans in September 2023. Housing inflation had caused statistical centers to refrain from releasing new data for over eight months, but this approach could not hide the economic realities of the country. In this context, the Research Center of the Islamic Consultative Assembly reported on August 9 that the lower income deciles are being pushed out of the housing market, stating that the first to third deciles are absolutely unable to secure housing for their needs, while the third to fifth and even parts of the sixth decile are 'relatively' unable to do so. The Research Center also reported on June 8 about the critical housing situation in Tehran, noting a '950% increase' in prices over the past five years. The Tehran City Council also reported on September 4 that 70% of households in Tehran are experiencing 'housing poverty' and 'bad housing.' The report emphasized that the share of housing in household expenses has risen from 33% in the 2000s to over 50%, indicating that more than 70% of Tehran's households are suffering from 'housing poverty.' Ebrahim Raisi, the President of the Islamic Republic, repeatedly promised to 'build one million homes per year' during his presidential campaign and after his cabinet took office, but over two years later, the fulfillment of this promise remains in question. The number of slum dwellers has increased from 600,000 to 25 million over three decades. Tasnim reported on workers sleeping in tents; salaries below 15 million tomans indicate poverty. Housing inflation is '30% higher' than general inflation. The expansion of slum housing; the Research Center of the Parliament: 6 million people have 'informal' housing. The Statistical Center of Iran reported that the year-on-year inflation of residential apartments in Tehran reached over 75% in September this year.