“Two-Thirds” of Household Income in Tehran and Major Cities Goes to Housing Rent

According to a new assessment by the Ministry of Roads and Urban Development, 64 percent of average household income in Tehran and other major Iranian cities is allocated to housing rent.

The report evaluated the average household income in 1399 at approximately 8 million tomans and stated that the average monthly rent for a 75-square-meter residential unit in 1399 was 5 million and 250 thousand tomans.

This share was estimated at 59 percent for other provincial centers and cities with populations above 200,000, and 49 percent for cities with populations below 200,000.

The Ministry of Roads and Urban Development did not explain what changes the share of housing rent has undergone compared to previous years, but statistics from the Central Bank show that the share of housing costs from household income in Tehran Province in 1398 was around 50 percent. This figure was only 24 percent in 1380.

While the Central Bank claims an increase of less than 38 percent in housing rent around Tehran, field investigations by the Mehr News Agency published on July 4 show that this increase is around 60 to 70 percent.

According to a resolution by the National Corona Virus Combat Headquarters, the ceiling for rent increases in Tehran is 25 percent, in provincial centers 20 percent, and in cities surrounding Tehran 15 percent, but in practice this resolution has been ignored.

Source: Radio Farda