The Analysis of the Turkish Housing Finance System within the Global Financial Crisis
27th Annual American Real Estate Society (ARES) Meeting, ARES 2011 Doctoral Seminar, Seattle, Washington, April 13-16, 2011
Posted: 22 Dec 2011
Date Written: April 14, 2011
Abstract
Housing is one of the major socio-economic problems in Turkey. High intensivity of spontaneous settlements (gecekondu), nearly 40 % in urban area, would be accepted as the sufficient criterion for the level of the housing question in Turkey. Additionally there are important quality problems in the existing housing units. In addition to failing policies in market-based solutions to housing question, it has observed that affordable housing policies of central/local governments were not financially/politically sustainable in the last 50 years. Although there are more than one reflection, we may summarize the outcome of the failing social/market based policies on housing by analyzing housing shortage variable. So, according to several researches, Turkey needs 600.000 new housing unit every year and current housing deficit of the market is nearly 6 million units. The above numbers represent a clear 'failure' in terms of both market and social housing finance/supply systems.
Keywords: housing finance, mortgage, spontaneous settlement, housing policy
JEL Classification: R31, R38
Suggested Citation: Suggested Citation