Housing Remains Unaffordable; Rent Inflation Leads the Way

The news agency 'Emtidad' reported the continued dominance of rent inflation over food prices, identifying this as the primary concern for 28% of rental households in Iran. In a report published on Thursday, April 9, it noted that at the beginning of Ebrahim Raisi's presidency, the average housing price was 31 million and 700 thousand tomans, which has now risen to 80 million tomans per square meter. The report stated that rent inflation, based on changes in the rent index, is reported at 41.4%, while food inflation is at 32%. Statistics released by the government agency, the Statistical Center of Iran, also show that over 28% of Iranian households are renters and are grappling with the significant issue of rental prices. According to the report's author, initiatives such as the National Housing Movement, the construction of rental housing, and the provision of deposit assistance loans have been ineffective in alleviating the pressure on tenants. The Statistical Center of Iran claims that urban households spend about 37% and rural households about 19% of their income on housing. However, some experts believe this data presents an overly optimistic view, as in lower income brackets and among workers, up to 70% of incomes are spent on rent. The newspaper 'Donya-e-Eqtesad' reported in November 2023 that rent prices in Tehran had increased by 55% in the first seven months of 2022, breaking a 30-year record of rent increases that had averaged 24% annually since 1991. The pressures in the housing market have reached a point where the Fars News Agency, affiliated with security institutions, reported in February 2023 that excessive and unreasonable rent increases are currently placing significant economic pressure on tenants. The agency described the market conditions as lacking any oversight or enforceable laws to control rents in Tehran and Pardis, with landlords setting prices based solely on mutual references and consultations with real estate brokers focused on increasing their commissions. In February 2023, Iranian media reported a rise in people living in basements in various cities, noting that rental costs have become so high that some are resorting to renting basements for housing. The newspaper 'Shargh' reported on February 21, 2023, the commencement of 'micro-apartment' construction to address the housing crisis, with a one-million-square-meter area in Tehran province designated for the construction of 20,000 affordable housing units. The Research Center of the Parliament, a government-affiliated research body, also noted in a report last August the increasing number of households unable to access the housing market, stating that the first to third income deciles are completely unable to secure necessary housing, while the third to fifth and even parts of the sixth decile are 'relatively' unable to meet their housing needs. The promise of constructing one million housing units annually and addressing rental issues was among Ebrahim Raisi's commitments, which has drawn criticism from opposition groups due to its failure to materialize. This situation comes amid a history of housing issues under previous administrations, including that of Hassan Rouhani. In response to criticisms regarding the current housing situation, the state news agency 'IRNA' stated that housing has historically faced challenges, and the negligence of the previous government in the housing sector has led to an eightfold price increase, making it impossible for many to secure housing, a crisis that still plagues the country.