How things have changed! 5.6 million citizens have lost their homes in 18 years

The Istanbul Planning Agency (IPA) has conducted an assessment based on TurkStat’s homeownership and tenant statistics. In its evaluation, it drew attention to the housing crisis.

According to the data, the homeownership rate has fallen by approximately 5 percentage points over the last 9 years, dropping to 56.2 percent in 2023. Furthermore, at least 5.6 million citizens have lost their homes since 2006.

THE PROPORTION OF RENTERS HAS INCREASED

During the same period, the proportion of those living in rented accommodation, which was 22.1 percent, rose by 5.7 percentage points to 27.8 percent. According to calculations made by the IPA based on the data, at least 5.6 million citizens have lost their homes since 2006. In its assessment of the issue, the IPA stated, "Those who owned homes were forced to sell them, and for the new generation, becoming a homeowner has become almost impossible. Partly due to the insistence on practices such as selling housing to foreigners, Turkish citizens have been dragged into a deep and ongoing housing and rental crisis. With each passing day, a large number of homes have become concentrated in the hands of a small number of wealthy individuals."

HOUSING LOANS ACCOUNT FOR 92 PERCENT OF HOUSEHOLD INCOME

According to a report by the Association of Real Estate and Real Estate Investment Companies (GYODER), the monthly installments for a housing loan to purchase a 100-square-meter home in Istanbul correspond to 92 percent of a household's disposable income. Banks provide housing loans for up to 70-80 percent of the value determined in the property's appraisal report. While the interest rate for a 120-month housing loan at public banks is 3.79 percent, assuming an average home price of 3 million TL, it is possible to obtain a loan of 1 million 800 thousand TL with a 120-month maturity, though this varies depending on income status. This means that at a 3.79 percent interest rate, the monthly payment is 69 thousand TL. At this rate, the total repayment rises to as much as 8 million 281 thousand TL, causing the cost of the home to rise to as much as 9 million 480 thousand TL.

News Source: 12punto