Housing Outcomes in Turkey: How Do Middle–Income Households Fare?

Abstract

Despite the doubling in size of the middle class and the significant housing increase in Turkey, little research has examined housing outcomes of middle–income households, particularly relative to affluent households. The housing increase and 2007 Mortgage Law could have reduced housing differences between middle–income and affluent households, but the rise in gated communities could have increased these differences. Using data from Turkey's 2012 Household and Budget Survey, we find that middle–income households are significantly less likely than affluent households to own their homes and live in larger homes, and among owner–occupiers, in homes of higher value. Less pronounced differences are found in their residence in newer homes. Fewer differences in housing outcomes exist between middle– and lower–income households, particularly among owner–occupiers. These results suggest that the most affluent households, rather than the poorest households, are likely isolating themselves from other households, thereby affecting the future well–being of middle–income households.