EghtesadOnline Reports:

Housing Imbalance Reaches Nearly 6 Million Units / The Supreme Housing Council of the Fourteenth Administration to Convene Soon!

As the housing sector grapples with an imbalance nearing 6 million residential units, the Fourteenth Administration, led by the President, is seeking to convene a meeting as soon as possible to address this issue.

News ID: ۲۰۰۰۴۷۷

15 December 2024

EghtesadOnline: the government and parliament are currently focused on resolving imbalances in various sectors, particularly in energy. However, the longstanding disparity between supply and demand that has driven up housing prices is primarily attributed to the housing sector's imbalance.

While some may attribute the housing imbalance to the private sector, it is important to note that, as emphasized by the Housing Production Leap Law, banks are required to allocate 20% of their total loans to the housing sector.

Statistics clearly indicate that the lack of cooperation from banks in extending loans to the housing sector somewhat mitigates the blame directed at the private sector for the imbalance in housing.

Experts believe that the Housing Production Leap Law does not impose a new financial burden on banks; rather, they can redirect previously disbursed loans to this sector.

Mohammad Reza Rezai Kouchi, Chairman of the Parliament's Civil Engineering Commission, emphasized that he has repeatedly alerted the government about the housing imbalance, which has now reached six million residential units. He noted that the Seventh Development Plan adequately addresses the improvement of housing indicators, aiming to reduce housing waiting times to 7.5 years.

He stressed that during the Seventh Development Plan, housing production should reach five million units and urged that the President must urgently devise a plan to tackle this housing imbalance. Consequently, he has formally requested that the President promptly issue an order to convene a meeting of the Supreme Housing Council.

Rezai Kouchi also pointed out that solutions must be found regarding banks' reluctance to provide loans for housing, as the Central Bank has refrained from announcing new urban housing loan amounts for over five months.

The Chairman of the Civil Engineering Commission further remarked that immediate decisions are necessary to eliminate obstacles to housing production and supply, as well as to develop support plans for vulnerable groups. He added that the Parliament has increased the housing loan ceiling to 800 million tomans with the goal of revitalizing the housing market and improving households' living conditions; however, this loan increase has yet to be implemented. This delay not only causes confusion among applicants but also undermines public trust in the banking system.

It appears that the Supreme Housing Council, as the policymaking body for housing, has yet to hold a meeting under the Fourteenth Administration. Consequently, members of parliament and the Civil Engineering Commission have requested that the President urgently issue an order for the first meeting of the Supreme Housing Council.

While ongoing meetings of the Supreme Housing Council may bring some hope for balancing the housing market, a critical missing element currently is liquidity and construction challenges—issues that neither municipalities nor engineering organizations nor the government are willing to address.