Jalil Sar-ghale blamed owners for holding onto empty properties until the market stabilised, which was also forcing up rents, the state-run Aftab newspaper reported.
Property experts believed house prices would keep on rising throughout the year, the paper said.
The MP was quoted as saying: “The buying and selling of housing, especially apartments, has hit an unprecedented downturn, and this has resulted in economic stagnation.
“This increase in prices has resulted in decreased purchasing power, which is a reason for the downturn.
“Besides this, the psychological climate of rising prices has resulted in apartments staying empty so that their owners can sell them in future at a higher price.
“This has also resulted in increased rents. This is causing an increasing challenge to people who are already renting.”
Even before the Iranian currency reaching its all time low of almost 40,000 Rials to one dollar in February 2013, it was almost impossible for young people in Tehran to afford the purchase of a home without financial assistance from others.
It is not the lower class that has such difficulty even middle-class is greatly affected by skyrocketing housing prices in Iran.
In February Tehran residents staged a protest in central Tehran in Vali-e-Asr street protesting against high prices of housing in Tehran.