Title: Housing Costs Reach Critical Threshold, Prompting Calls for Comprehensive Policy Response
A National Economic Priority
Housing has evolved beyond a mere consumable or investment good in Iran; it has become the most significant pressure point in the household expense portfolio. According to the latest data from the Statistical Center of Iran, the share of housing costs—encompassing rent, mortgages, housing loans, and maintenance—has risen to 43.7% of total annual household expenditure. This figure, unprecedented since the early 2010s, is a direct consequence of the rapid surge in rental prices and the general increase in housing costs in recent years. It indicates that a substantial portion of household income is now dedicated to securing and maintaining shelter, leaving significantly less for other essential needs.
The Disproportionate Burden on Lower-Income Households
The statistics reveal a clear picture of social inequality and economic pressure. While over 68% of urban households own their homes, approximately 16% are tenants and 7.5% are mortgage-payers, with a large concentration of the latter groups likely in major metropolitan areas. An analysis based on expenditure deciles shows that the economic pressure of housing falls most heavily on the lowest-income families. Households in the first decile spend over 60% of their total expenditure on housing. This allocation leaves less than forty percent of their budget for food, education, healthcare, and other necessities, placing these families at high risk of deep poverty and vulnerability to economic shocks.
Geographical Concentration of the Challenge
The geographical distribution of this pressure highlights a crisis centered in urban areas. Families in Tehran allocate nearly 60% of their expenses to housing. Neighboring provinces like Alborz, as well as provinces with expensive tourist or urban markets such as Gilan, also bear a high burden. This pattern demonstrates the intense demand in urban centers and a shortage of suitable, affordable housing supply within the financial reach of the majority of citizens.
Policy Imperatives for a Sustainable Market
From a policy perspective, the message is clear: controlling the housing market with short-term tools is insufficient. An effective policy package must simultaneously strengthen the supply side and intelligently manage demand. In the short term, targeted housing facilities, support programs for low-income tenants, fair rental regulations, and increased market transparency can be leveraged. However, structural solutions are necessary for the medium and long term. These include:
- Accelerating the production of affordable housing through public-private partnerships.
- Reforming the tax system on vacant properties and property income.
- Facilitating sustainable access to housing loans.
- Developing urban infrastructure to expand supply in suburban areas and reduce demand pressure in city cores.
Experts also emphasize the need for data-driven and regionally-specific policies. National averages can be misleading, and decisions that do not account for provincial and decile differences risk exacerbating existing inequalities. Ultimately, when housing consistently consumes the bulk of a household’s budget, the effects on consumption, savings, and investment in education and health become apparent, potentially weakening long-term economic growth. Reforming the housing market is not just the concern of a single ministry but a national priority for safeguarding household livelihood security and economic stability.