The pressure of housing costs is still on the shoulders of the lower deciles – Tejaratnews
According to Tejarat News, surveys show that in recent years, inflation has had a greater impact on the housing market than other indicators.
This case has put the housing market in an unsettled state by increasing the prices of all kinds of goods and generally the economic expectations in the society, in such a way that its various dimensions are affected today.
The recent report of the Iranian Statistics Center shows that spot inflation has reached 51.3% and housing prices have grown by 5.39% compared to January of last year. This figure has registered 39.4% in the rental market.
On the other hand, housing inflation in urban households has been estimated at 39.6% in the past year, which reaches 39.5% in the rental market.
Rural households have experienced a 3.38% increase in the housing market in January this year compared to last year’s January, which reaches 37.8% in the rental market.
Spot inflation last month was 48.5% and according to Tejarat News’ previous research, since the beginning of the President’s government, that is, from August 1400 to at least December 1401, the housing sector has grown by 55% and has occupied an important part of the household’s budget.
Another report published by the same center shows the importance and share of housing in inflation.
Share of housing in monthly inflation
Based on this, the coefficient of importance of housing, which is measured with other items such as water, electricity and other fuels, is estimated at 35.5% in the whole country. Meanwhile, the importance coefficient for the first decile is higher than other deciles and the tenth decile has the lowest percentage in this case.
These statistics show that the burden of housing inflation and providing shelter is still on the shoulders of the lower strata of Iran’s economy, and housing occupies the largest part of the portfolio of low-income households.
Also, the share of housing in the monthly inflation is 0.5%. Among them, the tenth decile has the largest share, and the ninth, eighth, and sixth deciles are in the next ranks.
In general, the long-term inflation in Iran has caused a large amount of people who were considered economically average until yesterday to be considered as a weaker group.
The pressure of inflation on these tithes has caused people to spend a large percentage of their income on housing costs. While in European countries people spend an average of 20% of their income on housing, this figure has reached 60-70% in Iran.
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