The US and Turkey are closely monitoring... In which country are home prices higher

The rise in inflation following the pandemic and the increase in interest rates in the US have affected the entire global economy, while the negative decoupling observed in Turkey, along with the surge in housing prices, has brought housing debates to the forefront. The inflationary environment seen in the US during and after the pandemic period has led to an increase in home prices.

In the US, data goes back to 1965 and is presented in 3-month, 6-month, and annual periods. In Turkey, the Central Bank's housing price data is available from 2010 onwards and is published in monthly periods. To be compatible with the US, quarterly data is shown in the chart.

As of the second quarter of 2024, the average house price in the US is 412,300 dollars, while in Turkey, the housing unit price is 33,459.9 TL, which corresponds to 1,034 dollars. For a 100-square-meter house, the price is 103,414 dollars.

When taking the square meter prices based on housing unit prices from the CBRT and the average prices of homes sold in the US from the Fed's FRED statistical system on a quarterly basis, the change in the price of a 100-square-meter house has emerged.

While home prices in the US appear to have declined by 1.48 percent over the last year, they increased by 36 percent in Turkey in TL terms. However, they fell by 13 percent in dollar terms.

When comparing price changes over the last 5 years to the second quarter of 2019, prices in the US appear to have risen by 27.84 percent. According to a report in Ekonomim, during the same period in Turkey, the increase was 1,115 percent in TL terms and 121 percent in dollar terms.

The change in housing prices since 2010 has once again drawn attention in terms of Turkish Lira. While home prices in the US have risen by 87.84 percent, they appear to have increased by 62.86 percent in dollar terms in Turkey. However, a 3,334 percent increase in Turkish Lira terms stands out.