Turkish Housing Affordability from the Perspective of Shift in Sales of Housing Financing Mode and Construction Cost Index
4th International Conference on Real Estate Development and Management “Residential and Commercial Real Estate Markets Under Climate Crisis and Financial Risk and Their Future, Ankara, Türkiye, 3 - 05 Şubat 2025, cilt.1, ss.1, (Özet Bildiri)
- Yayın Türü: Bildiri / Özet Bildiri
- Cilt numarası: 1
- Basıldığı Şehir: Ankara
- Basıldığı Ülke: Türkiye
- Sayfa Sayıları: ss.1
- Ankara Üniversitesi Adresli: Evet
Özet
Housing affordability has become a global issue, and the need for urgent attention was recognized in SDG11, which set a target of affordable housing by 2030. However, the continuous increase in the construction cost index and the decrease in house sales financed by financial intermediaries have prompted an examination of the Turkish housing market's behaviour. The study variables are house sales by mortgage, house sales by others, first-house and used-house sales, construction cost index, interest rate, and income distribution, based on national monthly frequency data from January 2013 to September 2024. Data was obtained from the Turkish Department of Statistics. Dummy variables captured the potential shocks in the Turkish housing market during the study period. This study examines the implications of the shift in housing sales financing modes in Turkey and the consequences of the rise in the construction cost index for the Turkish housing market. This study used an event study to conclude that the Turkish housing market behaves differently in response to shifts in housing sales financing modes and the construction cost index. The findings revealed that the construction cost index and financing intermediaries are crucial in explaining housing affordability in the Turkish housing market. However, the frequency of data on unemployment rates and GDP imposed constraints on their inclusion in the analysis.
Keywords:
Turkish housing market, Housing affordability, Housing finance, Construction
cost index, Interest rate, Income distribution