An examination of Iranian citizens’ messages on social media indicates that house rent has become one of the most significant economic concerns for Iranians. A considerable number of messages shared by users on a daily basis on social media focus on issues related to rent, high costs, and inflation in this domain.
The common theme in these messages is the inability to afford house rent and the monthly increasing expenses, especially in the capital.
According to a survey, the average share of rent in the expenses of Tehran households has exceeded 50%, and residents of the capital, on average, spend around 150 million rials (approximately $252) monthly on house rent.
More than 50% of the survey participants declared monthly incomes and salaries of less than 160 million rials (approximately $269).
A March 9th report in Etemad newspaper examines the relationship between rent inflation and overall inflation in Iran, noting that, except for some initial months of the year, in the second six months, rent inflation has surpassed monthly general inflation.
According to the report, comparing rent inflation this year with that of 2022 shows that tenants in 2023 have faced a more challenging year. In late September 2023, the regime’s Donyaye Eghtesad newspaper reported a 12-year record-high annual increase in nationwide rents during the first half of the year, reaching 38.5%.
The report highlights that the recent six-month growth in rents has been unprecedented since 2011. A user on social media, referring to the days before the Persian New Year, wrote: “People are trapped under these skyrocketing prices… Besides house rent and utility bills, they are struggling to fill their stomachs, and whether it’s a holiday or not has become irrelevant to them.”
Another citizen commented on the situation: “Nights close to the Iranian New Year, for some, are reminders of unpaid debts, bounced checks, unmet demands, medical expenses, empty bank accounts, house rent, school fees for children, and a broken-down car.”
Etemad, citing Abbas Akbarpour, a real estate market expert, reported on March 9 that if the declared inflation rate is around 40%, the rent rate exceeds this figure, with the primary reason being the increase in the foreign exchange rate in the market.
According to Akbarpour, in one instance alone, the Euro-to-rial exchange rate has faced a 25% growth in the last two weeks, which has had a significant impact on all items, including rents.
The real estate market expert further stated: “If the increase in rent rates is higher than inflation, landlords in this ailing economy won’t benefit much from these rates, but whether tenants comply with these rates for rent renewal is crucial.”
In August 2023, online news outlet Faraz published a report indicating that many families, due to the inability to pay house rent, have migrated from Tehran and stored their household items in rented containers.
On October 11, 2023, the state-run ILNA news agency reported on income and expenses of workers, stating that on average, about 55% of workers’ salaries in provinces go towards house rent.
According to the report’s data, in the capital, workers’ entire salary is spent on rent.
A social media user on X, referring to the widespread concern about house rent, wrote: “Until around the age of 20, we had no understanding of house rent or the prices of household necessities and expenses. I traveled in a bus with school children and saw today’s 10- and 12-year-olds fully aware of the house prices in their area and knowing that high rent brings them trouble.”
Despite the denial of inflation and skyrocketing prices by Iranianauthorities, some official reports indicate a significant disparity between incomes and citizens’ public expenses.
Babak Negahdari, the head of the parliament’s research center, stated on October 8, 2023, that housing prices and rents had increased tenfold from 2018 to the present.
Based on this, if five years ago, the rent for a small apartment was about 10 million rials, today, a family renting the same, likely older, house must pay at least 100 million rials per month.
