Why Did Housing Prices Rise to a Record Level in Turkey? An Empirical Analysis

Yaşar Reha Z. () and Bulut Erdem ()
Additional contact information
Yaşar Reha Z.: Department of Economics, Kirikkale University, Ankara Cd. 7. Km, 71450 Yahşihan/Kırıkkale, Turkey
Bulut Erdem: Department of Economics, OSTIM Technical University, (Ministry of Trade of the Republic of Turkey), Ostim, 100. YılBlv 55/F, 06374 OstimOsb/Yenimahalle/Ankara, Turkey

Real Estate Management and Valuation, 2023, vol. 31, issue 4, 1-10

Abstract: Turkey is one of those countries where housing market has been most severely affected by COVID-19 pandemic. Today the effects of the outbreak have been eliminated significantly. This study retrospectively looks at the days when the world faced a widespread outbreak of a pandemic and investigates the effect of the pandemic and the changes in consumer confidence on housing prices and the volatility of housing prices. Considering the structural breaks in the analysis period (2010:q1-2022:q4 quarterly), we used the Lee and Strazicich structural break unit root test as a research method. The results show that an increase in costs due to a break in the supply chain and containment measures forcing the workforce to stay at home affected the housing supply adversely. It is observable that expansionary economic policies and social assistance programs have a positive effect on housing demand. In this regard, negative supply shock and positive demand pressure are seen to be the determinants of the recent housing price increases in Turkey. However, while there is a positive relationship between consumer confidence and house prices, the effect of house prices on the volatility is statistically insignificant.

Keywords: COVID-19; housing price; consumer confidence (search for similar items in EconPapers)
JEL-codes: F44 R21 R31 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/remav-2023-0025 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:remava:v:31:y:2023:i:4:p:1-10:n:7

DOI: 10.2478/remav-2023-0025

Access Statistics for this article

Real Estate Management and Valuation is currently edited by Sabina Zrobek

More articles in Real Estate Management and Valuation from Sciendo
Bibliographic data for series maintained by Peter Golla ().