Housing Costs in Iran Twice as High as in Europe

The share of housing expenses in Iran, including rent and mortgage payments, has risen to nearly double the European average, creating severe financial pressure on Iranian households. According to international affordability standards, housing costs should not exceed 30 percent of a household’s income; otherwise, housing is considered unaffordable.

News ID: 2002053

The European Union measures housing affordability through an indicator known as the “housing cost overburden rate,” which reflects the proportion of households spending more than 40 percent of their disposable income on housing. On average, about 10 percent of urban households in the EU fall into this category.

According to data from Iran’s Statistical Center for 2023–2024 (Iranian year 1402), housing expenses accounted for about 42 percent of the total household consumption basket across the country. In comparison, the average housing cost share in the EU stands at just 20 percent of household income. This indicates that Iranian families are bearing a much heavier housing burden, depriving many of affordable and stable living conditions.

Economic experts warn that escalating housing costs not only reduce household purchasing power but also have a direct social impact, particularly by discouraging marriage among young people. In Europe, concerns about housing affordability have become a central social issue. In some countries, nearly one-third of urban residents spend more than 40 percent of their income on housing./ilna