Mohammad, a 29-year-old resident of western Tehran, was not surprised when his landlord raised the rent for his 20-year-old apartment from 130 million rials ($73) to 230 million rials ($130). With the monthly minimum wage at about $90 and the poverty line for a family at $400, most tenants are barely surviving.

“I think the landlord was happy to extend because of market conditions, and I wanted to stay because the price increase could be worse,” said Mohammad, a ride-hailing driver. His neighborhood was not hit by the US and Israeli regime air strikes in late February.

According to the Statistical Center of Iran, rents rose 31% year-on-year in April. In Tehran, prices are 30-40% higher than last year, with areas less affected by war seeing faster increases. Inflation stood at 73% in the same month and is expected to rise further.

A Tehran real estate agent told Al Jazeera that fewer contracts are being signed due to uncertainty. “Prices are shifting lifestyles; people are looking for housemates, moving to smaller cities, or returning to their parents’ homes.” Home purchase prices have also surged, and construction is stalled.

The Iranian authorities have capped annual rent increases at 25%, but this has become a floor rather than a ceiling. Government loans for rental deposits in Tehran are capped at $2,050, far below actual deposits for family-sized units.

Emergency relief was provided to those who lost homes in the war, but tenants in damaged buildings still face rent obligations. The future looks bleak as US regime President Donald Trump threatens renewed strikes, and Iranian President Masoud Pezeshkian says, “Those who fight must endure hardships.”

One woman, Rezaei, told Al Jazeera: “I bought many things last week, and now their prices have doubled. My purchasing power has decreased by at least 70%.”

Source: www.aljazeera.com