Iranians report housing prices rising by 50 percent year on year with rental costs now roughly twice the average salary, causing huge economic and social chaos on a country already in the depths of recession.
Iran's ongoing housing crisis has seen a 70-square meter apartment in one of Tehran's cheapest neighborhoods, Berianak, now cost at least $460 a month, way beyond the average salary of around $240 a month.
To delve deeper into the issue, we investigated the cheapest districts in Tehran to examine the costs of a modest flat. Districts 15, 16, 17, 18, 19, and 20 in the southern capital are known as the cheapest areas for renting and buying houses.
Divar, a classified ads and e-commerce mobile app, is widely used in Iran to check real estate prices. Founded in 2012, Divar serves as an online platform for real estate, vehicles, goods, community services, industrial equipment, and jobs. Our research converted deposit amounts and monthly rents to US dollars for better reader understanding, using the day's exchange rate of 580,000 rials per dollar.
In Iran, the deposit is treated as part of the total rent. Paying a deposit of 1,000,000,000 rials ($1,700) upfront can reduce the monthly rent by 30,000,000 rials (over $50). Alternatively, depositing the same amount in a bank can yield a monthly return of 20,000,000 rials ($35).
A 50-square-meter apartment in Shahrak-e Valiasr in District 18 is offered for 125,000,000 rials per month, or about $215. This leaves an average income earner with only $25 for other expenses for a family to live on for a month.
A larger but older apartment is offered for 225,000,000 rials ($387) per month. This flat is nearly 20 years old but has been newly painted and refurbished.
In the southernmost neighborhoods, such as district 20, mostly the Rey region, a 40-square-meter flat is advertised for $205 per month. Another flat without a lift and parking space, located on the third floor and 15 years old, is offered for $230. The owner is willing to rent it to a single person, a rare option, especially for single women who often struggle to find suitable housing.
In districts 15, 16, 17, and 19, the monthly rent for a 50-square-meter apartment ranges from $200 to $400, depending on factors such as age, parking space, number of floors, and proximity to amenities like parks, schools, and the metro.
Empty promises from officials to reduce rent rates
On Wednesday, the Minister of Roads and Urban Development, Mehrdad Bazrpash, stated that “the cap on housing rent increases in the provinces was set at an average of 25%” for the current year (ending in March).
However, in reality, rents have increased by nearly 50% compared to the previous year according to the Vice President of the Real Estate Union, Davoud Beiginejad, citing data from the Central Bank and completed transactions.
This starkly contradicts all the promises the government has made regarding the reduction of housing rent.
Criticizing the policy announced by the minister, Namad-e Eqtesad, an economic website, wrote that mandated actions in the market are detrimental to both the market and tenants, such policies possibly leading to a decrease in the supply of rental housing.
"Currently, paying rent has become unaffordable for a large number of tenant households, and the fact that some groups are still managing to pay rent under the current conditions is nothing short of a miracle," the site noted.
Mahan, who married two years ago, works for a private company and told Iran International that his salary is about 170,000,000 rials ($295) monthly. He lives in a flat in Tehransar, southwest of Tehran.
His wife is a housewife, and he is the sole breadwinner. They have no children yet. He says he rented a flat for $150 right after marriage, but the landlord asked for $200 the following year and $300 this year to renew the contract.
"I am so desperate. I don’t know what to do. This means I have to pay more than my income for rent, and nothing will be left to live on. We are thinking of getting divorced and living with our parents," he added.
We also spoke with Mahdi, a worker at a furniture workshop in Mortezagerd near Tehran. He is a father of two and works 14 hours a day to make ends meet, but still struggles.
His wife runs an online clothing shop. Together, they earned almost $400 monthly last year, but with nearly 50% inflation and the rise of the US dollar against the rial, their income has dramatically dropped. Mahdi said he paid $200 for rent per month last year but now has to pay $300, which consumes all their income after the rial's depreciation.
Reza Gheibi, an economic journalist, told Iran International that the rise in the cost of land, labor, and construction materials amid heavy global sanctions on the country has all contributed to the increase in housing prices and rents.
He predicted this trend will continue as it began in February with the rise of the US dollar against the rial, and after a few months, its effect on the rent market became evident. "The coming months will see worse incidents, especially for tenants," he predicted.
Almost two thirds of Iran's population now live below the poverty line, with record unemployment and ongoing international sanctions which have seen even Iran's educated middle class thrust into poverty.
One person was killed and at least ten people injured in the drone attack, which happened around 3 a.m. local time Friday.
Evidence from the aftermath shows it was an Iranian-made drone Samad- 3 model sent by Houthi rebels that struck very close to the US consulate, which was the site of the former US Embassy in Tel Aviv.
Until Friday, Houthi drones or missiles directed at Israel had all been intercepted. Israel's military is investigating why it missed the drone. However, the Houthis have seriously disrupted international commercial shipping in the Red Sea by attacking cargo ships and tankers since November. The US and Britain have retaliated several times against Houthi military targets without deterring the Iran-backed militia ruling over more than half of Yemen.
Alex Selsky, an advisor to the Middle East Forum, said the explosion proves that this is not a war between Israel and Iran's proxies, but rather a broader conflict that is being fought in Israel. He said Israel is a symbol of the United States and the West in the Middle East, and pays a price for it.
"It proves again and again that it's not only about Gaza, it's not only about Lebanon, and it's not only about Israel. It's about the United States and the West. Because no such attack can be executed without minimum coordination, maximum instruction from Iran. And no such thing can be done without Iran being backed by its biggest allies: Russia and China," said Selsky.
Selsky, who was also a former advisor to Israeli Prime Minister Benjamin Netanyahu, said the timing of the attack and location are significant.
The strike happened just as former President Donald Trump, gave his keynote address at the fourth and final night of the Republican National Convention (RNC) Thursday evening in Milwaukee just five days after an assassination attempt that could have ended his life. Then the drone attack taking place near the US consulate in Tel Aviv.
Selsky said ultimately no one knows for sure if that was all intentional but when you connect the dots a pattern does appear.
Beni Sabti, an expert on Iran from the Israeli National Security and Strategy Institute (INSS) said the drone attack in Tel Aviv exposes a weakness in Israeli defensive strategy policy, that may embolden its adversaries if action isn't taken.
The cornerstone of Israel's national security strategy is its 'defensive strategy,' reflecting its preference to manage conflicts as much as possible.
"It's the time that Israel has to show itself and its capabilities and its quality," Sabti told Iran International.
He made an analogy to a soccer match, saying you can't always be on the defense when you're playing, you have to also attack to win the game.
"You cannot only defend. You have to go to the source to neutralize it, even if it's in Yemen. If you don't want to deal directly with Iran, then we need to deal with the shooter. If we don't go to the head, we have to deal with the fingers or the hands that are doing it," he said.
In April Iran launched a massive barrage of 350 missiles and drone at Israel. Israeli air defenses and allies warplanes shot down 99% of the projectiles, but it was the first time that the Islamic government in Iran dared to directly target Israel. There was a limited Israeli retaliation against one target in Iran and since then no escalation took place.
The IDF posted to X on Friday "regardless of who pulls the trigger, we know who is the loading the gun."
Israeli officials are hinting of a possible response on Yemeni territory with a retaliatory attack under consideration, according to the Jerusalem Post.
An official comment has not been made yet by Prime Minister Benjamin Netanyahu, but IDF Spokesperson Daniel Hagari posted to X addressing the latest attack.
“We are fighting a multi front war. Hamas in Gaza, Hezbollah in Lebanon, the militias in Iraq and Syria, as well as the Houthis in Yemen, all the Iranian proxies, and Iran itself.”
A spokesperson for the Houthis, Yahya Saree, said they would continue to attack Israel, according to Reuters.
There are fears of wider regional conflict with Israel exchanging daily missiles and artillery fire from Hezbollah since the war in Gaza.
