Iraj Rahbar, head of the Tehran Mass Builders Association, said that following the U.S. and Israeli attacks on Iran, the price of construction materials in the country has increased by 100%.
Rahbar added that under the current conditions, developers are unable to launch new projects and are only trying to complete projects that are already under construction.
According to him, since March 2026, the prices of construction materials, production inputs, and labor wages have risen at an unprecedented pace, sharply increasing construction costs.
The head of the Tehran Mass Builders Association emphasized that for some petrochemical-related products, the increase has exceeded 100%.
Iranian Citizens Struggle to Cover Expenses as Housing Crisis Deepens
He said the construction cost per square meter in Tehran is approximately 550 million rials (about $293) under the best conditions, while in some projects it ranges between 600 million and 700 million rials (about $320 to $373).
It is worth noting that the minimum monthly wage for a worker with one child is approximately 240 million rials (about $128).
In addition, in April and May, one month after the ceasefire in the U.S.-Israel war against Iran’s regime, domestic media reported a sharp surge in rents, followed by unprecedented pressure on tenants’ livelihoods.
The state-run ISNA news agency reported that in the mid-2000s, rent accounted for 25% to 40% of household income in large cities and 15% to 25% in smaller cities. However, based on 2025 data, the figure has now reached 50% to 70% in large cities and fluctuates between 20% and 50% in smaller cities.
Unprecedented Surge in Water and Electricity Bills
The state-run Ettela’at newspaper, referring to the sharp increase in water and electricity costs during June and July, wrote that the bills of some ordinary subscribers have increased by as much as 300% or more. Electricity bills for some households have risen within a month from 3 million rials to between 8 million and 10 million rials.
The newspaper wrote on Wednesday, August 4, that although higher consumption during the warm season is partly natural, the sharp increase in bills for households living in small and medium-sized homes—including subscribers who were previously considered “low-consumption” users—does not appear normal.
The newspaper also suggested that lowering the consumption threshold may have classified more subscribers as high-consumption users. It warned that charging people higher utility costs under difficult economic conditions could lead to increased public dissatisfaction and a decline in social trust.
