The end of military conflict and the ceasefire between the United States and Iran’s regime have not restored calm to the economic environment; instead, it has imposed a new wave of crushing pressure on vulnerable groups. While it was expected that relative stability would improve living conditions, the cost-of-living crisis driven by widespread unemployment and workforce reductions in companies has placed tenants in a far more difficult position. According to official statistics for 2024, about 30% of all households in the country and nearly 60% of residents of the capital, Tehran, rely on renting as their only housing optional population now trapped between the two blades of unemployment and securing shelter.
Intensification of the rental crisis following the war and collapse of incomes
Workforce reductions in February and March marked a turning point in the rental crisis. The shutdown or reduced activity of companies under wartime conditions has eliminated the income of many households. This situation has left tenants facing a severe cost-of-living crisis, with many households now struggling to pay even the base rent.
According to 2024 data, about 30% of households in the country are tenants. This share rises to around 40% in major metropolitan areas. Considering a population of approximately 28 million households, nearly 8 million households are renters. These figures indicate the nationwide scale of the crisis.
Although rent increased by about 30% over the past year, the main issue now is the base rent amount. Tenants who have lost their jobs have reached a deadlock in covering housing costs. At the same time, uncertainty in the labor market has created severe stress for those still employed.
In March, the average rent in Tehran reached 90 million rials per month, with a deposit of 12 billion rials (approximately 600 dollars and 80,000 dollars, respectively). Such cost levels have placed unprecedented pressure on households.
Survival strategies amid the collapse of tenants’ livelihoods
Studies show that renter households have turned to emergency coping strategies. The first response is requesting extra time to pay rent. Some also use their deposits to cover rent, a move that reduces their minimal financial reserves.
Many tenants have decided to move to smaller housing units. Migration to cheaper areas or city outskirts has also increased. Some households have been forced to return to their parents’ homes. This trend reflects a severe decline in economic capacity.
Paying the rent for Esfand (March) with the salary from Bahman (February) is a sign of widespread financial pressure. Cutting essential expenses and adopting extreme saving measures have also become common. Selling cars to secure housing deposits is another notable response.
Receiving unemployment benefits is possible for some, but the amount is insufficient. Working in ride-hailing services has also resulted in low income due to reduced demand. Meanwhile, landlords are increasingly choosing tenants with stable jobs, making access to housing more difficult.
In southern areas of Tehran, the inability to pay rent is extremely high. In these areas, even deposits are used to cover rent. Under such conditions, renting has become a multidimensional crisis.
Housing poverty and unprecedented pressure on household budgets
Nearly half of the country’s tenants are experiencing housing poverty. This concept refers to cutting essential expenses in order to pay rent. Households have been forced to reduce spending on healthcare, education, and even food. This trend has wide-ranging social consequences.
Housing costs account for about 43% of household expenses nationwide. In Tehran, this figure reaches approximately 59.9%. Such a share eliminates the ability to manage other expenses, making renting a primary driver of poverty.
A decline in rental housing supply combined with rising demand has created market imbalance. Households relocating from high-risk areas have added to this demand. At the same time, signs of further price increases are emerging.
Economic disruptions and declining incomes have changed the behavior of both sides of the market. Landlords have become more selective in choosing tenants, while tenants face stricter constraints. This situation has intensified the rental crisis.
Policy gaps and ineffective support in the rental crisis
In the policy domain, the measures taken have not adequately addressed the crisis. Although housing deposit loans have been offered with an interest rate of around 4%, the repayment installments are heavy. Many households cannot afford to repay these loans.
In the legal sphere, existing laws lack sufficient flexibility. Even under wartime conditions, tenants are required to meet their obligations, which has placed additional pressure on them.
Some households have been forced to pay rent for two units simultaneously due to forced relocation during the war. At the same time, direct support for tenants has been limited.
Experts emphasize the need for immediate intervention. Proposals such as extending rental contracts and preventing evictions have been raised. However, implementing these policies faces challenges. Overall, renting under current conditions requires serious reconsideration of housing policies.
The set of recent developments shows that the rental crisis has reached an unprecedented stage. The combination of war—driven by the policies of regime supreme leader Ali Khamenei—along with unemployment, inflation, and weak government support has multiplied the tenants’ crisis far beyond a simple escalation.
