The latest worldwide comparison of mortgage share in total bank lending offers a clear picture of financial support for housing across countries—a picture in which Iran’s position is particularly alarming. With only 3% of total bank loans allocated to housing, Iran ranks at the very bottom globally; a gap that is not only enormous compared to the 19% global average but also incomparable to even the smallest statistical examples elsewhere.
At first glance, developed countries emerge as champions in allocating banking resources to the housing sector. Norway with 56%, the United Kingdom with 49%, Switzerland with 46%, and Sweden with 44% demonstrate that in advanced economies, housing is both a cornerstone of the credit system and a driver of household purchasing power. These countries view their banking systems not merely as financing sources but also as instruments of social policy to support public welfare.
A level slightly lower—but still significant—is occupied by countries such as Australia (64%), Canada (35%), and the United States (28%); economies that, despite diverse financial structures, dedicate a substantial portion of lending to housing. These figures highlight that housing is not merely an investment commodity; it is a nexus of livelihood, social security, and credit flow.
Even in another category of economies analyzed as regional examples—such as Saudi Arabia (23%), Brazil (16%), and Angola (38%)—the share of mortgage lending is significantly higher than in Iran. This comparison becomes even more meaningful when considering soaring housing prices in Iran, declining household purchasing power, and the lack of access for middle-class families and young people to formal financing.
Iran’s mere 3% share at the lowest end of the chart is more than just a statistic; it signals a deep gap in housing credit policy. While housing is a key driver of production, employment, and economic growth, its low weight in the banking network can exacerbate the shelter access crisis, increase inequality, and intensify financial pressure on households.
If economic policymakers aim to control housing costs, expanding the mortgage lending system is not a choice—it is a necessity.
NOURNEWS