Priced Out of the Housing Market

According to new data released by the Ministry of Roads and Urban Development, the home price to income ratio in Tehran increased from 13.8 in fiscal 2016-17 to 32.2 in 2020-21.
In other words, the value of homes was 32 times higher than the annual income of average households in the capital.
The concept of price-to-income ratio is used to measure the affordability of homes. When banks and financial institutions give home loans, they consider the price-to-income ratio to assess how affordable it is to the loan applicant. The price-to-income ratio is generally known as attainability. It is used especially to measure the long-term affordability of homes in a region.