Abstract
The Global Financial Crisis of 2007–2008 resulted in falling house prices, declining construction activity, and deteriorating affordability in the countries affected by the crisis. The Turkish housing markets reacted differently from their European counterparts due to Turkey’s recently developed mortgage finance system, unvaried mortgage finance products, less reliance on mortgage finance in housing transactions, and governmental support for construction. Particularly over the last 15 years, the country has achieved high levels of housing output. Despite this performance in housing production , the housing problem in Turkish cities has long been considered as a quantitative deficiency by subsequent governments. This study argues that increasing the quantity of the housing stock is no longer the major housing challenge in Turkey. Instead, the problem involves supply management under the current conditions of the housing markets. From the urban and regional planning point of view, there is a need to redefine the housing problem(s) of the country concerning housing production levels across the country, housing affordability among different household groups and in different regions, tenure composition, and safety and quality of life in housing and living environments.
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Notes
- 1.
Although there is no secondary market for mortgage loans in Turkey, the legal framework for the establishment of a secondary mortgage market already exists.
- 2.
For a detailed overview of the formation of urban housing stock in Turkey, refer to Özdemir Sarı (2010, pp. 43–50).
- 3.
There is no clear definition of ‘excess production ’ in the relevant literature. In this study, cases where construction permits issued per added household exceeds 1.5 are considered to have an oversupply.
- 4.
This information is based on the records of the National Address Database of TURKSTAT. These data are available upon request from TURKSTAT.
- 5.
Calculated by the author from the raw data of the 2014 Survey of Income and Living Conditions by TURKSTAT.
- 6.
Data at provincial level are not available.
- 7.
Since 2014 it is not possible to differentiate urban and rural areas from the statistics of TURKSTAT.
- 8.
Calculated by the author from the raw data of the 2014 Survey of Income and Living Conditions by TURKSTAT.
- 9.
Chapter 12 of this book provides a detailed account of these losses.
- 10.
Chapter 8 of this book discusses residential transformation in Turkey, in detail, starting from the 1980s.
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Acknowledgements
Raw data of the 2014 Survey of Income and Living Conditions by TURKSTAT are accessed through a research project entitled ‘Housing Affordability and Measurement Methods’, funded under the Scientific Research Projects of Middle East Technical University (SRP: 08-11-2016-036).
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Özdemir Sarı, Ö.B. (2019). Redefining the Housing Challenges in Turkey: An Urban Planning Perspective. In: Özdemir Sarı, Ö., Özdemir, S., Uzun, N. (eds) Urban and Regional Planning in Turkey. The Urban Book Series. Springer, Cham. https://doi.org/10.1007/978-3-030-05773-2_9
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