According to Tejarat News, it was in October of this year that the news agencies published news about the decrease in the purchasing power of workers to buy housing. According to these reports, a worker in Tehran has to save a third of his salary for 133 years to become a housewife.
This is despite the fact that the average housing price in Tehran at the time of publication of this report was about 43 million tomans, and now according to the latest Central Bank statistics, it has reached 48 million and 70 thousand tomans.
But in the last five years, how has the minimum wage changed in relation to the average housing price and how far has it moved workers away from the indisputable right to own a house?
Comparison of housing price growth, wages and inflation
Review of 2016
In 2016, the minimum wages were 930 thousand tomans; At the same time, annual inflation was estimated at 6.9 percent. The minimum wage last year was 812 thousand tomans.
Inflation this year is considered to be one of the few years in the economy after the revolution, due to the signing of the JCPOA.
The increase in the percentage of wages this year is ahead of inflation and shows that people’s purchasing power has been in a relatively better condition.
Review of 2017
The minimum salary in the following year, i.e. 2017, was set at around one million and 114 thousand tomans, while inflation had jumped to 21.2%.
On the other hand, the average housing price has grown by 91% in March 2017 compared to the same month of the previous year.
According to observations this year, with the growth of wages by 22.5%, the minimum wage has a smaller gap with inflation, and although the gap between the two has decreased compared to the previous year, wages are still one step ahead of inflation.
Review of 2018
In 2018, the government announced the minimum salary of one million and 516 thousand tomans. This year, however, inflation reached 41.2% and the average housing price in March of this year has grown by 5.41%, which is almost equivalent to inflation.
In 2018, unlike the two previous years, the minimum wages have lagged behind the inflation with an increase of 36%, and from this year, the purchasing power of the people will begin to decrease.
Review of 2019
In 2019, the minimum wage from the government was one million and 910 thousand tomans, and the inflation in that year reached 4.36 with a decreasing trend.
In an unprecedented event, the average housing price has increased by 7.93% from March 2018 to March this year, which is almost unprecedented.
This year, the minimum salaries have lagged behind inflation with an increase of 25.9%. On the other hand, the unprecedented increase in the average housing price has caused the purchasing power to reach the lowest possible level in the last five years.
Review of the year 1400
Last year, the minimum salary was set at two million and 655 thousand tomans in 1400, and inflation grew up to 2.40%. In this year, compared to 2019, according to the statistics of the Central Bank, the average housing price has grown by 16%. Meanwhile, minimum wages have experienced the biggest increase with 39% growth compared to the last five years.
Review of 1401
Also, the inflation has reached 48.5% by December this year and the average housing price in Tehran has increased from about 34 million and 200 thousand tomans to 48 million and 70 thousand tomans in December this year.
In other words, the average housing price has also experienced an increase of 40.2%. At the same time, the economy as a whole is experiencing high inflation and the purchasing power does not seem to have improved.
143 years of waiting to become a housewife
From 1396 to 1400, the minimum wage has grown by 5.185% and inflation has also increased from 6.9% to 2.40%. Also, the average housing price has increased by 998 times from April 1396 to December 1401.
If we consider a third of a worker’s salary to buy a house during the year, a household with the salary of 2016 had to wait 58 years to buy a 58-meter house.
Although this figure seems impractical, now a family has to wait 143 years to buy a house of the same size according to the statistics of Azar month!
Even though the inflation in 2016 was a single digit and the average housing price is not comparable with the current number, statistics show that in the same years, the ratio between the minimum salary and the average housing price made it impossible for households to buy a house, especially in metropolitan cities. reach
Now, with the increase in inflation and the average housing price, the purchasing power of people will decrease by hundreds of percent and buying a house will almost become a dream for Iranians.
With the decrease in the amount of construction due to the high cost of construction materials and the increase in inflation month by month, it seems that this high cost will continue at least until the inflation is controlled and the economic situation improves and the situation will worsen.
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