Housing production under less-regulated market conditions in Turkey
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In recent years, the numbers of annual housing starts in Turkey have greatly exceeded the increases in the number of households. Such high levels of housing output occur under less-regulated and highly competitive market conditions, and when conventional housing policies associated with a welfare state are not introduced. In addition, the decentralized planning system and the potential for profit through housing investments when compared to most other sectors appear to have been instrumental in the high levels of supply. However, in addition to the affordability problem for moderate-to-lower income households, an important outcome of increasing dependence on the less-regulated market is the great variation in housing starts among the provinces of Turkey. In this paper, the results of a research that was undertaken in eight provinces to investigate this phenomenon are also presented, from which it can be understood that the level of housing starts is related positively to the number of plots with planning permission that are supplied in urban areas, and the way in which they are brought to the market.
KeywordsHousing policies Housing starts Land supply Mortgage finance Welfare state
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