Since the late 2010s, housing costs have become a significant financial strain for Iranian households, particularly in major cities. The rising cost of rent and housing now consumes nearly half of the average family’s income, turning home ownership and even renting into a major financial burden.
Housing Costs on the Rise
Official statistics show that housing expenses have steadily increased across Iran’s 31 provinces. In 2023, the average household spent 42.2% of its income on housing, up from 38% the previous year. In Tehran, this figure has reached an alarming 56%. For comparison, renters in the early 2000s spent just 28% of their income on housing, but since the 2010s, this percentage has climbed consistently.
According to international standards, housing expenses should not exceed 30% of a family’s income. When housing costs surpass this threshold, families often experience a decline in their quality of life, with reduced access to essential goods and services.
Factors Driving the Housing Crisis
Several factors have contributed to the sharp rise in housing expenses, but one of the primary drivers is the rapid increase in commodity prices and soaring inflation. This inflationary pressure has been especially intense in urban areas, forcing many people to migrate to the outskirts of cities, where living conditions are often substandard.
Comparing Iran’s Housing Burden to Other Countries
To better understand the impact of housing costs on Iranian households, it’s useful to compare these costs with those in other countries. In Iran, housing and related services account for 42.4% of urban household expenses. By contrast, the average for OECD member countries is 23%, and for European Union countries, it’s 24.1%.
Among European nations, Slovakia has the highest housing cost burden at 30.4%, still significantly lower than Iran’s. In Finland (29.3%), Denmark (29%), Switzerland (27%), Ireland (26.3%), France (26.2%), and the Czech Republic (26%), housing takes up a large share of household expenses, but remains below the Iranian average.
Meanwhile, countries like Portugal (17.3%), Serbia (18.2%), Romania and Bulgaria (18.4%), Slovenia and Poland (18.9%), and Greece (19.2%) experience considerably lower housing costs, hovering around the 20% mark.
The Impact on Iranian Families
The dramatic rise in rent prices over the past few decades has had a direct impact on the well-being of Iranian families. Many households have been forced to cut back on essential expenses, such as food and medical care, in order to meet housing costs and avoid losing their homes.
Efforts by various governments to control rent prices have largely failed, due to the persistent increase in overall inflation. This unchecked inflation continues to undermine any policies aimed at easing the financial burden of housing for Iranian families.
