The price of land and housing is the driving force of economic pressure on the people/ solving the housing problem has 3 basic solutions

According to the economic correspondent of Fars News Agency, the housing sector is among the most importantthe most Sections in ScheduleThe development of a country is considered and has significant social, economic and cultural dimensions. In this regard, due to chronic and high inflation and as a result of the increase in housing prices, the economic aspect of this basic commodity has now become more prominent than in the past.

According to the statistics published by Statistical Center of IranThe cost of housing is largethe most Household expenses are considered during life. Currently, the share of housing in the family budget has reached over 60% in some cities. The objective evidence of rising rental prices and decreasing housing purchasing power also proves this issue.

The high share of housing in the family’s budget has caused even small changes in the price of housing and rent to have a big impact on costs. On the other hand, the 30% share of housing in the calculation of general inflation has turned it into a factor whose price increase has increased inflation. And if Price reduction can act as an inflationary anchor.

* Increasing the share of housing in the budget of households

In this regard, Ali Naderi Shahi, an expert in the economic field, saidWego Fars reporter, stating that the trend of housing share in the basket The consumption of Iranian urban families has increased due to the increase in land and housing prices, he said: In 2017, the ratio of net housing costs to total household costs or the ratio of rent to total costs of urban households was equal to 35.52 percent.

He added: In other words, 35.52% of household expenses are related to the housing sector, but according to the head of the Majlis Research Center at the conference on social and economic technical requirements and mechanisms for the realization of the national housing movement, in 1400, the share of this sector in the consumption basket of urban families Iran has increased to 60-70%.

This economic expert emphasized: This indicates a decrease in the share of other consumption sectors and a decrease in household welfare.

Naderi Shahi added: On the other hand, the average index of the share of housing costs in the household portfolio in the world is 18%, and its fluctuation range is approximately between 15 and 25%.Snake Expressing the situation no Basaman is housing in Iran, which will have negative effects on the social dimension in addition to the economic dimension.

* Land and housing Propulsion Inflation growth in the country

According to the graph of the cost share of the housing sector in the consumption basket of urban households in Iran compared to the global index during the period of 1373 to 1400, in most years the growth trend of land prices and the growth trend of housing prices is higher than the inflation rate.

So that from 1375 to 1386, 1388 and from 1393 to 1400, the growth of land and housing prices was higher than the inflation rate.

According to Fars report, housing inflation has always been higher than general inflation and housing inflation plays a role Propulsion in general inflation. Of course, except in the years when the Mehr Housing Plan controlled the inflation of this sector by increasing the supply of housing.

Housing inflation being higher than general inflation means a higher increase in housing costs compared to other costs; This issue means a decrease in the share of other goods, especially edible useful substances, in the family’s basket and causes a decrease in the family’s well-being.

Increase the price Housing and rent increase have caused social problems such as marginalization, poor housing and informal settlements, and cultural problems such as increasing the age of marriage, reducing the size of the family and aging population. Considering that the cost of housing in Iran is higher than the world average, the government should intervene in the housing market.

* How housing turns from a threat to an opportunity

According to the comments of experts in the field of economics and housing, it is possible to use housing as an inflationary anchor and turn its threat to the society into an opportunity to reduce inflation in the form of 3 categories of solutions.

The first is “controlling the price of housing by removing the price of land and supplying it by the government”, because land has the largest share in the cost of housing.

The next factor is “preventing speculation in the housing market”, which is achieved through the implementation of taxes in this sector, including capital gains tax (CGT).

The third issue is the issue of “building one-story housing in a gradual way” in order to reduce the cost of construction and increase the financial capacity of the applicants.

It seems that the implementation of these solutions is among the most importantthe most The removal of the price of land by the government can be solved with the supply of government and non-government land, and the increase in the price of this area can be controlled, and by reducing inflation, it will create an inflationary anchor factor in housing and increase public welfare.

The end of the message/T 21