Once one of the biggest life goals for the middle class, "buying a home of one's own" has been replaced in today's Türkiye by the struggle to "survive without giving half of one's salary to rent." Browsing real estate listings is no longer a tool for planning the future; it is indistinguishable from window-shopping for an unattainable dream.
The gradual shelving of the hope for homeownership has dragged millions of citizens into a mandatory vortex of rental housing. So, how did housing, the most fundamental right to shelter, become an unreachable luxury? Statistics clearly reveal how dire this picture has become.
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| Photo Ariel Paredes on Pexels |
Declining Home Sales: The Melting Purchasing Power in Numbers
Housing and workplace sales statistics published by TurkStat (TÜİK) clearly prove the difficulty citizens face in accessing housing.
- According to July 2026 data, home sales across Türkiye decreased by 17% compared to the same month of the previous year, realizing at 123,603 units.
- Looking at the picture of the first seven months of the year (January-July), total home sales decreased by 5.5% compared to the previous year, falling to 823,119.
- The situation is much more striking in the second-hand housing market, which citizens naturally lean toward using their own savings; in July, second-hand sales experienced a sharp decline of 20.8%, falling to 81,074 units.
- Even though mortgage sales based on bank loans increased by 23.7% annually in July to reach 23,888 units, the share of these sales in total sales remained at only 19.3%.
The fundamental truth these figures tell us is this: The limited number of sales circulating in the market are mostly made not by low- and middle-income earners wanting to meet their housing needs, but by a segment that has cash power and sees housing as an investment tool.
The Rent Crisis and the Burden of Rising Inflation
The rental housing market, the natural destination for the masses unable to purchase homes, is also incapable of meeting this massive demand. Citizens fleeing high housing prices are now caught by rent hikes that crush their incomes.
According to official data, annual consumer inflation (CPI) stood at 31.75% in July 2026. Based on the 12-month CPI average used to calculate rent increases, the legal upper limit for rent hikes for contracts renewed in August 2026 was set at 31.90%.
Even though the legal limits are around the 32% band, this is a shield that only applies to tenants who already have a home. For people who have to move, are relocated for work, or are starting a new household, the cost of renting a new house in the market is priced far beyond these legal limits. In metropolitan areas, the rent for a standard apartment has even exceeded the minimum wage limit.
The Root Causes of the Crisis: Why Did Prices Skyrocket?
This picture is the result of the simultaneous triggering of structural and economic problems that have accumulated over the years:
- The Multiplication of Construction Costs: High inflation has multiplied the costs of basic construction items such as iron, cement, and glass. As contractors unable to calculate costs hesitate to start new projects, the price of the limited number of houses produced is directly pulled up.
- Difficulty Accessing Credit and High Interest Rates: As shown by the share of mortgaged sales remaining at around 19%, the astronomical levels of mortgage interest rates have pushed monthly installments to unpayable dimensions.
- Supply Failing to Meet Demand: The 8.6% drop in first-hand home sales to 42,529 in July 2026 shows that the contraction in new housing production continues. While population and household needs increase, the lack of new production pushes prices up.
- Housing as an Investment Tool: Investors with money viewing housing as a safe haven to prevent their savings from melting against high inflation have carried prices to speculative levels.
Is This Sustainable?
The housing crisis Türkiye is going through has moved beyond being merely an economic indicator and has turned into a serious social issue. The alienation of younger generations from the idea of owning their own home, "even if they work all their lives," breaks their motivation for the future. Escaping this cycle is only possible if inflation is permanently reduced to single digits, intensive social housing projects for low-income earners are initiated, and housing is removed from being merely an "investment commodity" in the market and rebuilt as a "fundamental right."