Inflation and housing costs in Iran have surged to unprecedented levels, revealing the harsh realities of daily life in the nation’s cities and streets. This situation is felt deeply by the people, surpassing any need for external interpretation.
Inflation and housing costs in Iran have surged to unprecedented levels, revealing the harsh realities of daily life in the nation’s cities and streets. This situation is felt deeply by the people, surpassing any need for external interpretation.
Reports suggest that Iran’s housing market is primarily manipulated by influential and wealthy groups likened to mafias. Economic powerhouses, along with government-affiliated and private banks, have redirected their focus from typical banking endeavors, diving headfirst into the lucrative construction sector. This redirection has resulted in substantial profits.
Fluctuations in the housing market are no stranger to the Iranian populace. Although the market often sees price increases, decreases are infrequent and barely noticeable. This market, echoing the foreign exchange sector, seems to be tightly gripped by the Iranian regime’s authorities.
Economist Hossein Raghfar explained that influential political entities within the regime monopolize the housing construction sector, driving inflation for significant profit margins.
The regime’s maneuvers in housing, construction, and price determination are driven by exploitation and profit-seeking, often at the expense of the general public. These tactics have consistently exacerbated Iran’s housing dilemma.
Raghfar points to a deeper issue, arguing that the chaos within Iran’s housing sector isn’t just economic but deeply political. The core issue, he suggests, lies within the political economy of the regime. He alleges that many properties constructed are not for consumption but are instead speculative investments, as builders tied to the regime aim to ride inflationary waves for hefty profits.
This perspective finds supporting evidence in the policies set forth by the government, under the aegis of supreme leader Ali Khamenei. From the Mehr Housing program during Mahmoud Ahmadinejad’s era to the 4 million homes promised by Ebrahim Raisi, the outcomes have always been contrary to their claims, intensifying the housing crisis.
It is very unfortunate that the working class, due to poverty, tries to make a small mud room in the remote areas of the cities to protect their families and children, but after a short time is destroyed savagely by the IRGC agents. As the affluent, regime-connected class benefits from the market, the diminishing middle class considers migration, and the economically vulnerable are forced into informal settlements due to inflation.
Recent data from the Statistical Center of Iran indicates 24.5 million people are living in rented homes nationwide. Contrasting data shows that housing costs as a portion of Iranian household expenses surged by almost 900% over the past five years.
This stark and volatile surge showcases the regime’s absence of systematic and reasonable policies in the housing sector. Interestingly, the policies that are implemented, resulting in this price upsurge, seem to cater to those in power.
This housing crisis has triggered a reverse migration trend. Low-income families, once drawn to the allure of urban centers, are now retreating to city outskirts or rural areas, driven out by the soaring housing prices.
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