
Rent Caps, Eviction Bans, and Modular Homes: Governments Worldwide Tackle Housing Affordability Crisis
From Iran's automatic lease renewals to Spain's ban on energy-cost layoffs, states are deploying emergency measures as housing costs outpace incomes.
Governments in multiple regions are imposing new housing market regulations, including rent increase caps, eviction restrictions, and employment protections tied to energy costs, as affordability pressures intensify. In Iran, the heads of the three branches of government approved a decree mandating automatic one-year extensions of residential leases with a maximum 25 percent increase in rent and security deposits, effective through the end of the Iranian year 1405 (March 2027). The measure, announced by the Minister of Roads and Urban Development, also instructs judicial authorities to refuse eviction orders based solely on lease expiration, with four specific exceptions: when the landlord has obtained a permit for demolition or major renovation; when the property is formally sold to a third party; when the landlord or dependents need the unit for personal residence as verified by a court; or when the tenant has failed to meet contractual obligations causing significant loss to the landlord.
In Europe, Spain's government has linked housing stability to employment law. A royal decree-law prohibits companies receiving public aid to offset energy costs from using those same cost increases as objective grounds for dismissing workers until the end of 2026. According to the Spanish government, the measure aims to ensure that state support translates into job retention, not workforce reduction. Companies that violate the rule must return all aid received. Meanwhile, in Germany, a survey by the Allensbach Institute for the property company Heimstaden indicates that tenant dissatisfaction is driven less by rent levels alone than by high energy consumption and parking shortages. The study found that 42 percent of tenants cited energy inefficiency as a top annoyance, while 40 percent pointed to parking difficulties, compared to 37 percent who were unhappy with rent levels. Still, 67 percent of tenants in the seven largest German cities described their housing cost burden as high.
In South Asia, India's housing framework is shaped by a patchwork of state-level laws and the Model Tenancy Act, which only Assam has fully adopted. Under that model law, security deposits are capped at two months' rent, mid-tenancy rent hikes require written consent, and landlords must declare all charges upfront. Analysts in New Delhi note that in most major cities, older legislation offers fewer protections, leaving tenants to negotiate terms individually. Separately, Indian tax authorities clarify that while no inheritance tax applies to property received from parents, subsequent rental income and capital gains from sale are taxable, with the acquisition cost for capital gains purposes deemed to be that paid by the original owner.
In the Americas, affordability calculations are shifting. In the United States, a household earning $75,000 annually can typically afford a home priced between $215,000 and $270,000 under the 28/36 lending rule, assuming a 6.5 percent mortgage rate, according to financial analysts. In Argentina, a report by Focus Market estimates that a young person needs over 2 million pesos per month to live independently in an urban area, with housing costs alone exceeding 900,000 pesos. This has spurred interest in prefabricated modular homes imported from China, which are priced up to 60 percent below conventional construction, though additional costs for foundations, utilities, and permits can erode the initial savings. In Russia, a potential shift to differentiated rates for the state-subsidised family mortgage programme could raise monthly payments by 46 to 100 percent for some borrowers, depending on the number of children and loan term, according to a developer group vice-president. The various interventions and market shifts are set to evolve through 2026, with many measures carrying explicit expiry dates and others dependent on legislative adoption or regulatory review.
How the same story is told elsewhere.
2 editorial groups · 3 languages
Iran's government has approved automatic lease renewals with a 25% cap on rent increases to shield tenants from cost-of-living pressures. Courts are barred from issuing eviction orders solely due to lease expiry, with only narrow exceptions. The policy, in effect until end-1405, reflects direct state intervention in the rental market.
In Argentina, the government has issued an ultimatum: companies receiving public aid cannot lay off workers citing energy cost hikes until end-2026. Meanwhile, living alone now costs over 2 million pesos a month, with rent consuming a huge share. The measures reflect a desperate bid to contain the social fallout of soaring living expenses.
Related articles
Haaland double fires Norway into last 32 as Senegal’s hopes fade
4 languages · 26 outlets
SportAlgeria Rally to Sink Jordan 2-1, Keep Knockout Hopes Alive
5 languages · 20 outlets
Defense & SecurityUkrainian Missile Kills Five at Russian Electronics Plant as Drone Strikes Spread to Crimea and Siberia
8 languages · 12 outlets