Iran’s rental crisis reached its peak in October 2025, slowing the pulse of public welfare as official data showed annual rent inflation climbing to 36.5 percent -- a level economists describe as “severely burdensome” for tenants.
Tehran tenants ended the Iranian month of Mehr (late September to late October) facing a 34 percent year-on-year jump in rental prices, according to data from the Statistical Center of Iran cited by Khabar Online.
The government’s promised measures to regulate the housing market, the report said, have failed to materialize, with renters still squeezed by weak supply and spillover demand from the unaffordable homeownership market.
In major cities such as Tehran, typical monthly rents for standard apartments range from around $400 to $1,800, depending on location and quality.
On a broader national average basis, one-bedroom urban rentals are reported at approximately $250-$300 per month. However, the average monthly net salary is around $200.
While officials have highlighted a minor decline in the overall pace of housing inflation, figures published by the center confirmed rents continue to surge. Monthly housing inflation stood at three percent in late October, year-on-year housing inflation at 34.2 percent, and the annual rate at 36.6 percent -- only slightly below September’s 37.5 percent.
The outlet Tabnak reported that despite the withdrawal of genuine buyers, prices rose another three percent during the period, widening what it called the gap between “the expectation to sell high and the buyer’s zero purchasing power.” A 36.6 percent annual inflation rate, it added, compared with stagnant wages, has pushed first-time buyers out of reach of homeownership.
With both housing and rental prices rising together, accommodation costs now absorb a growing share of household income, fueling urban sprawl and eroding living standards.
The depreciation of the rial -- now trading around 1.08 million per dollar -- has intensified broader economic strains, which analysts link to renewed pressure following the reactivation of UN sanctions under the snapback mechanism.
