Decision for affordable rental housing emerges from meeting at the Palace: Who will be eligible?

The Economic Coordination Board meeting was held at the Palace. One of the prominent agenda items of the meeting was high rent increases, housing needs, and the shelter crisis.

According to a report by the pro-government newspaper Sabah, it was decided at the meeting to launch a mobilization for social housing starting in 2026. Affordable rental housing projects are planned to be implemented to support population growth and marriage.

The following findings and proposals were discussed at the meeting:

DECLINE IN RENTS IS SLOW

Notable assessments regarding the current rental market were made at the meeting. According to analyses by the Central Bank and economic management, the decline in rent prices is lagging behind the rate of decline in inflation. The main reason for this is the 25 percent rent increase cap that was applied in the past. Experts emphasize that this limitation triggered pent-up demand in the market and prevented rents from falling to the desired level. It was stated that this situation also creates pressure on inflation.

WILL START IN 2026

Due to the February 6 earthquakes centered in Kahramanmaraş, which caused massive destruction in 10 provinces, housing construction was concentrated in this region. The burden on the budget caused by the earthquakes will largely disappear in 2026. Starting from next year, a social housing mobilization will be launched, beginning with major cities such as Ankara, Istanbul, Izmir, and Antalya.

WHO WILL BE ELIGIBLE FOR AFFORDABLE RENTAL HOUSING?

According to the planned projects, a certain portion of the housing to be built will be rented out at affordable prices to newly married couples, disabled citizens, and civil servants through a lottery system. For example, in a project consisting of 500 units, 150 apartments will be set aside for rent. This practice is expected to both alleviate the housing problem and socially increase the tendency toward marriage and having children.