Four Deciles of Iranian Society Have Lost the Ability to Purchase Housing

Independent experts and analysts report that a significant portion of the population has exited the housing demand circle based on economic statistics and household living conditions. In this regard, 'Khabar Online' quoted a housing analyst stating that the main reason for housing poverty is the rising costs, especially housing costs, outpacing income, and currently, four deciles have completely lost the ability to buy housing. The website quoted Mohammad Baqer Qalibaf, the Speaker of the Islamic Consultative Assembly, stating, 'In Tehran, up to 70% of individuals' income is spent on housing rent.' According to the latest official statistics, it has been shown that from 2016 to 2022, over 48% of tenants in Iran have fallen below the poverty line. Additionally, based on statistics, the population living below the poverty line in Iran at the end of 2022 reached over 33%, and many experts believe that considering the inflation of the past two years and the rising trend of currency prices in the country, along with the further decrease in the national currency's value, the population of the poor has surpassed 50%. Reports indicate that one of the worst types of poverty is housing poverty, which has sharply increased with the price of each square meter in Tehran rising from 5.6 million tomans in March 2018 to 88.5 million tomans in September 2023. Masoud Farahani, a housing expert, told Khabar Online, 'The poverty caused by housing costs is such that the household in question is not considered poor in terms of income, but when they pay for housing, they fall below the poverty line.' The consequences of rising housing and rental prices have reached a point where the Tasnim news agency, affiliated with the security institutions of the Islamic Republic of Iran, reported on January 9 that 'considering the minimum wage of government employees and workers, not only workers but even government employees and military personnel, who are considered part of the middle class, cannot afford to rent or buy a housing unit in the suburbs of Tehran.' According to this security news agency, many of these individuals are forced to have two jobs or several family members must work to cover household expenses, which has significant social repercussions. The acceleration in price increases in Tehran continues, and according to Davood Beiginejad, the Vice President of the Real Estate Union, the highest price increase was in Region 22 of Tehran with a 34% rise. He stated that after Region 22, Region 1 of Tehran saw a 33% increase, and Region 20 had a 30% increase, leading the table of price increases in various areas of Tehran. This price increase occurs while experts indicate that the rising trend of the dollar price will soon manifest as an increase in housing prices. In this regard, Farshid Pourhajjat, the Secretary of the National Association of Builders, told Tejarat News, 'Given the current economic conditions and people's inability to enter the housing market, an increase in housing prices is certain, especially as the price of the dollar increases, construction materials and production costs are also under pressure.'