"Renting a house consumes 80 percent of people's income"
Iran's Minister of Roads and Urban Development says that the poverty imposed on families without housing has social consequences and harms. He reminds that providing housing for low-income groups is a legal obligation and requires the interaction of all agencies and institutions.
Mohammad Eslami, Minister of Roads and Urban Development, says the people's strong demand is housing and accelerating housing production. On the sidelines of the farewell and introduction session of the ministry's deputies, he pointed out the gap between supply and demand in the housing sector and said: "The homeless pay more than 80 percent of their monthly income for rent." He called the poverty caused by imposing this cost a social disadvantage.
The Minister of Roads and Urban Development added that the two systems of urban development and construction lack an efficient and effective control system: "The legacy of the past, which has imposed large costs due to disruptions on the people and the government, must be changed based on foresight and an examination of the needs and requirements for achieving balanced and sustainable development in regional, territorial, urban and local planning."
Mohammad Eslami emphasized that policymaking and providing land in the housing supply and demand market must be in accordance with the law to create a balance: "At the same time, there is a legal obligation to provide housing for low-income groups, but this issue requires cooperation and interaction with other agencies and institutions."
The housing situation, especially in Tehran, has taken an unprecedented leap in recent months. According to statistics from the Ministry of Roads and Urban Development, housing transactions have decreased by 53 percent and house prices have increased by 91 percent. Housing market participants predict that this sector will experience serious inflationary stagnation by the end of 2018.
Two years ago, Abbas Akhandi, the then Minister of Roads and Urban Development, said that there were 27 million housing units in the country, while the number of households was 24 million, meaning there were 2.6 million empty houses in the country: "In contrast, 19 million of Iran's urban population live in poor housing, and this shows that there has been a very inappropriate distribution in terms of facilities."
The cleric, who was accused by critics of negligence in regulating supply and demand in the housing market, resigned on October 19, 2018.
The increase in rents in Tehran after the price jump in the spring of 2018 caused many tenant households to move out of Tehran and move to the cities. In the fall of 2018, it was announced that the growth in housing prices had also spread to the south of the city and areas inhabited by low-income groups. For example, in District 9 of Tehran, including the Hashemi, Mehrabad, and Simatariji neighborhoods, rents and purchase prices have increased by 111%.
Source: DW
