<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Turkey is one of those countries where housing market has been most severely affected by COVID-19 pandemic. Today the effects of the outbreak have been eliminated significantly. This study retrospectively looks at the days when the world faced a widespread outbreak of a pandemic and investigates the effect of the pandemic and the changes in consumer confidence on housing prices and the volatility of housing prices. Considering the structural breaks in the analysis period (2010:q1-2022:q4 quarterly), we used the Lee and Strazicich structural break unit root test as a research method. The results show that an increase in costs due to a break in the supply chain and containment measures forcing the workforce to stay at home affected the housing supply adversely. It is observable that expansionary economic policies and social assistance programs have a positive effect on housing demand. In this regard, negative supply shock and positive demand pressure are seen to be the determinants of the recent housing price increases in Turkey. However, while there is a positive relationship between consumer confidence and house prices, the effect of house prices on the volatility is statistically insignificant.</p>
</abstract>

Turkey is one of those countries where housing market has been most severely affected by COVID-19 pandemic. Today the effects of the outbreak have been eliminated significantly. This study retrospectively looks at the days when the world faced a widespread outbreak of a pandemic and investigates the effect of the pandemic and the changes in consumer confidence on housing prices and the volatility of housing prices. Considering the structural breaks in the analysis period (2010:q1-2022:q4 quarterly), we used the Lee and Strazicich structural break unit root test as a research method. The results show that an increase in costs due to a break in the supply chain and containment measures forcing the workforce to stay at home affected the housing supply adversely. It is observable that expansionary economic policies and social assistance programs have a positive effect on housing demand. In this regard, negative supply shock and positive demand pressure are seen to be the determinants of the recent housing price increases in Turkey. However, while there is a positive relationship between consumer confidence and house prices, the effect of house prices on the volatility is statistically insignificant.

Why Did Housing Prices Rise to a Record Level in Turkey? An Empirical Analysis

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Why Did Housing Prices Rise to a Record Level in Turkey? An Empirical Analysis"}

Turkey is one of those countries where housing market has been most severely affected by COVID-19 pandemic. Today the effects of the outbreak have been...

Why Did Housing Prices Rise to a Record Level in Turkey? An Empirical Analysis

Published Online: Dec 09, 2023

Page range: 1 - 10

Received: Mar 10, 2023

Accepted: May 31, 2023

DOI: https://doi.org/10.2478/remav-2023-0025

Keywords
COVID-19, housing price, consumer confidence

© 2023 Reha Z. Yaşar et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Why Did Housing Prices Rise to a Record Level in Turkey? An Empirical Analysis

Published Online: Dec 09, 2023

Page range: 1 - 10

Received: Mar 10, 2023

Accepted: May 31, 2023

DOI: https://doi.org/10.2478/remav-2023-0025

KeywordsCOVID-19, housing price, consumer confidence

© 2023 Reha Z. Yaşar et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
COVID-19, housing price, consumer confidence