NEWSROOM

The constantly changing yet accumulating urban housing issue, which turns into a crisis, is analysed in the “Society Outlook 2023” report prepared by the ILKE Foundation TODAM. The report addresses the socio-economic outlook from economy to education, health to law, across all 81 provinces. Additionally, the report provides data and analysis on topics such as the construction sector, housing market, and property ownership for stakeholders.

TURKEY - The “Outlook of Society 2023: Urban Housing” report within the scope of Field Monitoring Reports was prepared under the editorship of Dr. Elyesa Koytak. The report was introduced to the public at an event held in Istanbul on February 12, 2024. The social and economic dimensions of the urban and housing issue, the report's focus, were examined. The report investigates the appearance of both urban life and housing life. 

The problem of access to housing increases inequalities

Dr. Elyesa Koytak, who expressed that access to housing is starting to decline and emphasized the need to take preventive measures before this situation becomes the main cause of inequalities, stated: "Problems have also emerged for young people who are newly entering education and employment. In this context, ensuring the housing rights of the younger generation is vital. Another important point is that housing policies should be monitored in a data-driven manner, considering the changing dynamics at the regional and provincial levels. Like European metropolises, Istanbul is on track to become a city where rental prices, tenant rates, and the old housing stock are high. Every policy related to Istanbul should start with the housing issue. Additionally, special housing access policies are required in the Southeastern provinces where urbanization, enrollment in schools, tenant rates, and workforce have shown rapid development in the last decade.

The average house price is 200 times the minimum wage

The report emphasised that access to housing has become significantly challenging for large segments of society. It highlighted an increase in housing costs and a rise in demand for housing, resulting in an inflated housing market. Consequently, it is considered impossible for those earning minimum wage to become homeowners. In December 2023, it was evaluated that the average housing price exceeded 3 million, and a person earning minimum wage would need to pay their entire salary for 17 years to afford an average home. Additionally, the housing crisis's primary cause was the rising construction costs. According to the report, the cost increase has been over 60% in the last 3 years, significantly impacting housing prices by reflecting on building and housing construction expenses.

7 out of every 10 houses sold in Istanbul are second-hand houses

The report prepared by the ILKE Foundation Indicates that the rise in the exchange rate and construction costs has hindered the increase of new housing stock. Therefore, it is emphasised that the demand is shifting towards second-hand homes. Particularly, the slowdown in economic growth and the increasingly rising construction costs are considered influential factors. In Istanbul, where the earthquake risk is high, it is highlighted that 7 out of 10 houses sold are second-hand. It is emphasized that the continued turnover of old houses creates a risky situation for a potential earthquake. The report underscores Turkey’s status as an earthquake-prone country, emphasising the need to renew and make housing stocks resilient.

The housing ownership rate is decreasing; tenancy is spreading throughout society

According to the report titled “Society’s Outlook 2023: Urban and Housing”, the rate of homeownership and the percentage of individuals owning homes are continuously declining. It is noted that Istanbul ranks first among the provinces with the highest tenant rates, with 37%, followed by Batman with 36.6% in second place, and Gaziantep with 36.1% in third place. The report examines the changes in homeownership rates over the past decade, particularly noting a decrease of over 10% in the East. The report also evaluates that individuals reside in a home for an average of 14 years and that the duration of changing residences is associated with homeownership.
There is not enough living space in residences 

According to the report prepared by the ILKE Foundation, in 2022, 85.2% of households in Turkey stated that their current residence lacked sufficient usable space, while the average size of the dwellings was 112.6 square meters. It is emphasized that the size of the dwellings increases as one moves towards the East, while in Istanbul and the Aegean region, people tend to live in smaller homes compared to other regions. The report highlights that 82.6% of households in Istanbul believe that their current residence lacks sufficient space. Additionally, in 2022, 21.7% of households in Istanbul complained about inadequate daylight, compared to 14.6% nationwide