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

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.