In search of cheaper homes

When SM Laizur Rahman got a notice from his landlord saying that his flat's monthly rent would go up by Tk 3,000 starting next January, he could not believe it.

"I was already struggling to meet my family's needs amid the rising prices of commodities. An additional expense of Tk 3,000 a month will be too much to bear."

Laizur, now in his early 30s, had rented the flat in Eastern Housing of Mirpur in the capital for his seven-member family when the rent was Tk 26,000. Since then, it went up every year before hitting Tk 30,000 this year.

The new hike eventually forced him to move to a cheaper flat in the vicinity.

"After a lot of searching, we took a three-room flat at a monthly rent of Tk 25,000, including all charges … It's a smaller place, but we have no other option as the monthly income has not increased in line with the rising living cost."

Many such tenants in Dhaka, especially those from limited-income groups,  are opting for cheaper housing in the face of spiraling inflation and economic fallouts, stemming from the Russia-Ukraine war.

The further rise in house rents and service charges has only added to their financial woes.

Some landlords have raised the rent and service charges citing the hikes in prices of electricity, gas, fuel, daily essentials, interest on home loans, and increase in maintenance costs.

According to the Consumers Association of Bangladesh (CAB), house rent in Dhaka has shot up by 15.90 percent in the last three years (2019-2021).

CAB data shows the rent of a 1,200 square feet house in the capital was Tk 24,590 in 2019, which increased to Tk 26,520 in 2020 and Tk 28,500 in 2021.

There is, however,  no survey or data by any organisation on how many people have moved to cheaper homes over the last one year.

The Daily Star talked to 23 residents of Mirpur, Mohammadpur, Kalyanpur, Moghbazar and Azimpur -- five major areas where a large number of people from limited-income groups reside -- and found that 16 of them were shifting homes, while seven others were considering it.

Residents of these areas say they have been seeing a spike in the number of 'To-Let' signs hung on the gates of many houses in their neighborhoods for the past seven to eight months.

Rafiqul Islam, a resident of Eastern Housing in Mirpur, said, "People shift homes mostly in December and January, but we're seeing a comparatively higher number of To-Let signs for the past seven months or so, which is unusual."

A few movers have said they too were witnessing a rise in the number of people shifting homes.

Redoan Hossain, owner of Bengal Movers, said, "For the last six to seven months, we are seeing a rise in the number of people shifting from areas with higher rents to those with lower ones."

A MOVE TO READJUST EXPENSES

Several tenants told this newspaper that they were forced to move as they could no longer keep up with daily expenses despite cutting back on purchases of some food and non-essential items.

Farzana Mahbuba, a mother of two, had to shift to a low-rent flat on Tajmahal Road in Mohammadpur from Mohammadia Housing in July. The rent of the three-bedroom flat is Tk 18,000 a month.

Her previous home had four bedrooms, and the building had a lift.

"I had to pay Tk 24,000 as rent and other service charges. Moving to the new flat saves me Tk 6,000, which I can now spend on buying essential commodities," said Farzana, who left her job four years ago.

She runs her family with the money her husband sends home from abroad and whatever savings she had.

Rafiul Alam, who sells electronics in Old Dhaka's Nawabpur, is facing a similar situation.

He had to move to a smaller, two-room flat in Khilgaon's South Goran area on October 1, as he could no longer meet his expenses with a monthly income ranging between Tk 22,000 and Tk 25,000.

"The rent of the new flat is Tk 10,000. I used to pay Tk 12,500 for the previous one … Apart from my family expenses, I need to take care of my elderly parents living in the village … The Tk 2,500 that I'm saving after moving to the new flat is helping me cover other costs."

Shamim Ahmed, a private job holder in Mirpur, said, "If the prices continue to rise, we will have no option but to shift to our village homes ultimately." 

EFFECTS ON THE QUALITY OF LIFE

Ghulam Rahman, president of CAB, said many of the Dhaka dwellers are being compelled to move to cheaper housing and this is having a negative effect on their quality of life.

He suggests reining in the prices of essentials and creating more employment opportunities as ways to ease the burden on people.

"The government enacted a law to regulate house rents a long time ago. But it did not make any difference," Ghulam said.

In 1991, Bangladesh enacted the House Rent Control Act to ensure house rents are affordable, giving some restrictions on the increase of rent.