A new report from Iranian state media has inadvertently exposed the depth of corruption and economic mismanagement within the country’s housing sector, revealing a structural crisis that has left millions struggling for shelter.

While the government continues to tout large-scale state housing projects as a solution, a February 11 report in Donyaye Eghtesad highlights that the true issue is not a lack of housing but rather a severe economic imbalance fueled by inflation, corruption, and failed policies. The report details that 1.5 million renters in Iran now live in absolute poverty, a figure that has surged by 50% since 2011. Over half of Iranian families officially suffer from “housing poverty,” indicating they spend an unsustainable portion of their income on shelter.

Despite the construction of 5.5 million new housing units over the past decade, the number of renters has continued to climb. This trend underscores that the crisis is not due to insufficient housing development but rather the regime’s economic policies, which have exacerbated inequality while benefiting speculators and the wealthy elite.

For years, Iran’s government has promoted state-controlled housing projects such as Maskan-e Mehr, yet the new revelations confirm that these initiatives have failed to improve affordability or accessibility. Instead, the housing market has been manipulated by politically connected insiders who hoard properties to inflate prices, profiting while millions suffer. The report bluntly states that “real estate speculation has made some owners even wealthier while millions are forced into worse conditions.”

One of the most damning findings is that 80% of those eligible for state-funded housing cannot even afford the initial down payment. In the past three years, over 5 million families applied for government-backed housing, yet only 1 million could meet the upfront payment requirements. This leaves 4 out of 5 applicants without any viable path to homeownership, exposing the deep flaws within the system.

Despite government claims that increasing construction will resolve the crisis, the report points to economic mismanagement as the primary driver of the catastrophe. Housing inflation has skyrocketed, with real estate prices in major cities rising by 650% over the past decade. Meanwhile, wages have stagnated, and today, an average Iranian family would need 65 years of savings to afford a home in Tehran—up from just 12 years in 2011.

The crisis is further compounded by rampant inflation, declining incomes, and a financial system designed to benefit regime insiders. Even developers, once eager to build, now refuse to sell completed units, hoarding an estimated 2.6 million empty properties as a hedge against currency devaluation and market instability. Meanwhile, nearly 4 million families are forced to live in substandard conditions, unable to afford even basic shelter.

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