Iran's housing market is heavily concentrated in its rapidly expanding urban centers. In major cities like Tehran, the skyline is dominated by mid-to-high-rise apartment buildings and condominiums, a shift from the traditional courtyard houses that once defined Persian urban architecture.
Real estate is traditionally viewed by Iranians as one of the safest investments and a primary hedge against severe inflation. Consequently, property prices and rental costs in major metropolitan areas are extremely high relative to median local incomes, making homeownership difficult for young adults and newly formed families.
The government has periodically launched massive affordable housing projects (such as the Mehr Housing Project) to provide subsidized apartments to low-income families, though these projects have faced criticism regarding infrastructure and location. In rural areas, housing remains more traditional, utilizing local materials such as brick, stone, and adobe.
