The government has initiated a land allocation plan for residents of inefficient urban areas to combat housing poverty. This action is taken in response to the increase in renting and marginalization in the country and aims to transfer ownership of the lands to the marginalized residents themselves.
Critical Situation of the Housing Market
Official statistics show that out of 27 million households in the country, about seven million households are renters. In other words, one out of every four Iranian households is a renter. Additionally, in Tehran, about 51 percent of the population are renters, making this province the most rental-dominated province in Iran. Recent reports from the Research Center of the Parliament also indicate that the number of renter households facing poverty has reached the highest historical level.
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Rental Housing Plan and Its Challenges
In support of renters, the government has introduced a rental housing plan. According to this plan, young couples who do not own residential property or land designated for housing and fall within the first to sixth income deciles can register to receive rental housing. The rent for households in the first and second deciles will be 35 percent, in the third and fourth deciles 45 percent, and in the fifth and sixth deciles 55 percent of the current rent rate.
However, there are many challenges regarding the financial resources for this plan. Additionally, it seems that the number of units offered in this plan may not be significant. Habibollah Taherkhani, Deputy for Housing and Construction at the Ministry of Roads and Urban Development, mentioned in a recent press conference the difficulty of low-income groups accessing housing and emphasized that the housing issue in Iran is not limited to supply alone.
Ultimately, the government is trying to address the critical situation of the housing market and the existing problems in the rental sector through these plans, but economic challenges and high inflation continue to hinder the improvement of housing conditions in the country.
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