32 million Iranians involved in housing rents / housing costs in Iran twice the global average

According to Tejarat News, according to official statistics, the number of tenants in Iran has increased from 12% in 1986 to 23% by 1985, to 27% by 1990 and to 38% by 1999.

Quoted from فرهیختگانThis means that 32 million Iranians are involved Housing rents are.

This number is significant from the perspective that according to statistics, in urban areas of the country, 43% of tenants’ expenses are related to housing; This figure is equivalent to 2.2 times the average household expenditure in the world.

Studies show that even in countries with market economies where the red line of governments is market interference, governments are directly and indirectly in the market. Housing rents They intervene and legislate.

The results showed that most industrialized countries in the world, based on the fact that homeowners have a high bargaining power and, more importantly, housing is a basic and essential household item, even in normal circumstances (except coronary conditions or periods of high general inflation) rent housing They do not give up and intervene in this market.

50% of the cost of Iranian tenants related to housing

This index shows the cost of housing out of the total household expenditure. As the data of the Statistics Center of Iran show, in the urban areas of the country, the share of housing in household expenditures has increased from 28 to 29 percent during the years 1356 to 1384 to 30 to 33 percent by 1396.

But in 1397, with the shock of sanctions, currency inflammation, rising inflation and the influx of capital demand into the housing sector, this sector also faced a sharp jump in prices and the result was that household purchasing power fell behind housing prices.

With the jump in prices in the housing market that has occurred in recent years; Statistics from the Statistics Center of Iran show that the share of housing in total household expenditures (food and non-food) has reached 35.5% in 1397, to 39.8% in 1398 and to 42.8% in 1399. This amount, in addition to being about 19 percentage points higher than the housing poverty rate (normal rate of 30%), is the highest share of housing in the expenditure basket of Iranian urban households in the last four decades.

The second indicator that can show whether housing in Iran is affordable or not; The ratio is the index of access to housing. This index calculates the waiting time to become a landlord based on the ratio of housing prices to 100% of annual household income. As usual, this index was usually provided by the Ministry of Roads and Urban Development, but in recent years, data on the access index has not been published.

The only data that can be used to measure the purchasing power of Iranian households is the Housing-to-Income Ratio Index, published by the online numbeo database for 486 major cities in the world.

According to the Namibian Online Database, in 2021, among 486 cities, Damascus, Syria, with an index of 67.8, has the lowest purchasing power for its citizens. After this war-torn city, Shenzhen, China, with a score of 46.3, ranks second in the worst purchasing power of citizens.

But in the third place, Tehran with a index of 45.9 has the third city in the world with the lowest purchasing power of households. In other words, if citizens living in Damascus, Syria, save 67 years of their total income, 46 years in Shenzhen, China, and 46 years in Tehran, they can own a 100-meter residential unit. This is a 100 meter standard housing unit that is considered for a family of 3 to 4 people in the world.

The cost of housing for Iranians is twice the global average

In order to better understand the consequences of high housing costs in the cost basket of urban households in Iran, here we have made a statistical comparison between housing costs in the cost basket of 52 countries in different regions.

This statistical comparison shows that while housing and related services account for about 43% of the cost basket of Iranian urban households, on average in the OECD member country about 23%, in the EU member states 23.9% and in the euro area 23%. 6% of household expenses are related to housing.

Among the 52 countries whose situation is compared to Iran, after Iranian households, the Finns with 28.9%, the Slovaks with 28.7%, the Danes with 28.1%, the Kuwaitis with 28%, the Czech Republic with 26.3% And France with 26.2% are in second to seventh place with the highest cost in this sector. In Russia, the share of housing in the household expenditure basket is about 13.8%.

In other words, the share of housing costs in the cost basket of Iranian households is 2.2 times the average of 52 countries in different parts of the world.

Homes in Tehran are twice as expensive as in Turkish cities!

While the price of housing in Tehran in April this year was 34 million and 273 thousand tomans per meter (equivalent to 1270 dollars per meter), this amount during February 2022 in all urban areas of Turkey is 537 dollars, in Istanbul 859 dollars, in Ankara 387 dollars and in Izmir was also $ 625 per meter.

However, these figures are in line with the fact that housing inflation in Turkey in February this year increased by 96% in the whole country, 106% in Istanbul, 97% in Ankara and 90% in Izmir compared to February last year. In other words, despite the fact that Turkish housing has experienced 90 to 100 percent inflation in the last year, the price of housing in Tehran is still 1.5 to 2 times that of Turkish cities.