The new global guide on "Housing Policy" presents a fresh definition of "supportive housing" for governments. Supportive housing today must include homes that are affordable for households, livable, and not subject to real estate speculation. This version is particularly necessary for our country's housing market under current conditions.
Challenges in Housing Provision and the Impact of Inflation
Currently, a household that previously received a 30-year loan at a fixed rate may find itself forced to accept a higher rate for renewing its loan once the rate stabilization period ends. This could raise the monthly payment to a level that is no longer bearable for them. For this reason, "Habitat" advises governments to shift from ownership-oriented policies to strengthening the supply of rental housing.
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The world is currently grappling with a "long-term shock of rental housing inflation." This crisis began in 2010 and is expected to see rental cost indices in many areas reach about double the levels of 2002 by 2025. This increase in costs, especially in countries facing rising inflation and low economic growth, could exacerbate the housing crisis.
Forced Displacements and Quality of Life
"Habitat" has also identified forced displacements of citizens as one aspect of the housing crisis this year and in the coming years. Wars, climate changes, and surging rental costs in major cities lead to the displacement and migration of tenants to suburban areas. These displacements affect individuals' quality of life and also burden destination cities with service mismatches.
According to Saeed Islami-Bidgoli, household welfare budgets have become a survival cost. When rental costs exceed 30 percent of income, tenants are forced to cut back on essential expenses. In Tehran, this pressure has reached as high as 73 percent. Therefore, it is essential for policies to focus on providing rental housing.
To achieve this goal, governments must prepare specific financial tools to encourage the private sector to produce and offer rental housing. The presence of rental companies in major cities, tax exemptions, and facilitating construction permits are among the tools that can help improve housing market conditions.
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