Official data on household income and spending in Tehran reveals that residents dedicated half of their expenses to housing last year. Analysts believe this share has likely grown due to rising housing costs.
According to a report by Dideban Iran, housing consumes half of Tehran household budgets, compared to just 21% in Bushehr province. While official statistics from Iran’s statistical center are often met with skepticism, the data paints a concerning picture of Iran’s precarious economic situation.
The same statistics show the average national share of housing costs at 38.1%. As of January 2024, the average housing price in Tehran has skyrocketed to 80,600,000 tomans, according to the latest report by the Statistics Center of Iran.
This price increase renders mortgage loans ineffective, as reported by Tasnim News Agency. Their analysis highlights that a “Maskan Bank” mortgage would only allow for the purchase of a meager 3.8 square meters of housing in Tehran.
In a March 10th report, Tasnim criticized the government’s housing policies as “inefficient” and failing to improve public well-being.
The decline in purchasing power is the primary factor hindering homeownership. A summer report by the Research Center of Iran’s parliament revealed that the bottom three income deciles (deciles one to three) were already practically excluded from homeownership due to their inability to afford mortgage payments by the early 2010s. The report goes on to state that these three deciles are now “absolutely” unable to afford housing, along with a “relative” inability for the fourth, fifth, and even parts of the sixth deciles.
It’s important to remember that the regime’s president Ebrahim Raisi pledged to build one million housing units annually during his campaign. However, more than two years into his administration, this promise remains unfulfilled.
