Rewritten Title: Global Housing Pressures: A Comparative Look at Policy Responses in Europe and Iran
Article:
A new analysis of housing affordability reveals significant pressures on households in both Europe and Iran, highlighting a shared global economic challenge and the different policy approaches being taken to address it.
The European Benchmark and Challenge
According to data from the European Union, approximately 10% of urban households across the bloc are under significant financial strain due to housing costs. For these families, rent or mortgage payments far exceed the affordability benchmark of 30% of household income set by international bodies like UN-Habitat. When housing costs consume more than 40% of disposable income, a household is considered to be under a “housing cost overburden.”
In response, the EU has initiated new policy measures designed to support access to affordable housing. These include financial mechanisms to help balance housing costs for vulnerable groups and proposals to double supportive funding, acknowledging the critical link between housing stability and social welfare.
The Iranian Housing Landscape
The data presents a contrasting picture of the scale of the challenge. While nearly 10% of EU households face this “overburden,” the share of household income dedicated to housing in Iran is significantly higher. Official statistics from the Iranian year 1402 (2023-2024) indicate that housing costs accounted for 42% of the total consumption budget for the average urban household nationwide.
This figure underscores the substantial economic pressure that housing costs place on many Iranian families, limiting access to affordable living options. By comparison, the average share of housing costs in the overall household budget across Europe is reported to be around 20%.
A Widespread Global Issue
The analysis confirms that housing affordability is a pressing issue in many regions. In several European countries, the crisis has become a central public concern. In Greece, for instance, nearly a third of the urban population spends over 40% of their income on housing, leading to public demonstrations in major cities like Madrid, Berlin, and Lisbon. Between 2015 and 2024, housing prices in the EU saw an average increase of 53%, outpacing income growth and placing particular strain on middle-class and younger citizens.
The comparative data illustrates that while the specific percentages may differ, governments worldwide, including those in Europe and Iran, are actively engaged in addressing the complex economic and social dynamics of housing markets to ensure the welfare of their citizens.