Evaluation of the Government’s Role in Providing Housing for Low-Income Groups from the Perspective of Development Laws (Case Study: Mehr Housing Policy)

Abstract

In recent decades, due to rapid urban population growth and profound transformations in the structure of Iranian cities, the country has widely faced a housing shortage. The insufficiency of housing supply and the inadequate quality of existing residential units have consistently been regarded as a major socio-economic challenge in Iran, and the provision of adequate housing—particularly for low-income urban groups—has remained a significant and complex issue. The designers and proponents of the Mehr Housing initiative, as one of the principal economic programs of the Ninth and Tenth Administrations, argued that by eliminating land costs from construction expenses and strengthening the role of the government in this process, the problem of insufficient housing supply could be resolved, the growing housing demand in the coming years could be met, and housing prices could consequently be reduced. The findings indicate that high inflation and instability in key macroeconomic variables have constituted the most significant obstacles to effective policymaking in this domain. Accordingly, large-scale housing construction projects implemented without consideration of sustainable financial resources have led to the exacerbation of government budget deficits and increased inflation, thereby making access to adequate housing more difficult for households—particularly for low-income groups. Furthermore, restricting housing support programs solely to construction activities has been among the main reasons for the unsatisfactory performance observed in this sector.