{"title":"Trends in housing markets during the economic crisis and Covid-19 pandemic: Turkish case","authors":"Esma Aksoy Khurami, Ö. Burcu Özdemir Sarı","doi":"10.1007/s41685-022-00251-w","DOIUrl":null,"url":null,"abstract":"<div><p>The recent global economic crisis and pandemic have shown that housing markets are highly exposed to the prevailing economic and social circumstances. Relevant literature indicates that housing output and transaction volumes were negatively affected during the Covid-19 pandemic. In contrast, price levels displayed variations under different circumstances shaped by demand shifts. Housing affordability conditions also deteriorated and household budgets were squeezed by the high housing cost burden due to the loss of livelihood and increased time spent at home during lockdowns. In the Turkish case, a severe economic crisis in 2018/19 preceded the Covid-19 pandemic. Housing output, housing prices, and the unemployment rate were much more affected by the economic crisis than by the pandemic. Spatial variation in the changes in the supply level was not homogeneous throughout the country. Lower supply levels were observed in the southern and south-eastern parts of the country and the major employment centres. However, compared to the international tendencies, total demand for housing increased, raising the housing transaction volume to record-high levels. In addition, housing prices during the pandemic skyrocketed, accompanied by increasing inflation rates. Furthermore, a demand shift towards single-family houses was observed, and the price gap between single-family houses and flats has widened since the pandemic began. The investment function of housing became prominent once again for wealthier households during the high inflation periods observed during the pandemic. The major conclusion drawn from this study is that the housing market deepened the existing inequalities in society during the current pandemic.</p></div>","PeriodicalId":36164,"journal":{"name":"Asia-Pacific Journal of Regional Science","volume":null,"pages":null},"PeriodicalIF":1.9000,"publicationDate":"2022-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"5","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asia-Pacific Journal of Regional Science","FirstCategoryId":"1085","ListUrlMain":"https://link.springer.com/article/10.1007/s41685-022-00251-w","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 5
Abstract
The recent global economic crisis and pandemic have shown that housing markets are highly exposed to the prevailing economic and social circumstances. Relevant literature indicates that housing output and transaction volumes were negatively affected during the Covid-19 pandemic. In contrast, price levels displayed variations under different circumstances shaped by demand shifts. Housing affordability conditions also deteriorated and household budgets were squeezed by the high housing cost burden due to the loss of livelihood and increased time spent at home during lockdowns. In the Turkish case, a severe economic crisis in 2018/19 preceded the Covid-19 pandemic. Housing output, housing prices, and the unemployment rate were much more affected by the economic crisis than by the pandemic. Spatial variation in the changes in the supply level was not homogeneous throughout the country. Lower supply levels were observed in the southern and south-eastern parts of the country and the major employment centres. However, compared to the international tendencies, total demand for housing increased, raising the housing transaction volume to record-high levels. In addition, housing prices during the pandemic skyrocketed, accompanied by increasing inflation rates. Furthermore, a demand shift towards single-family houses was observed, and the price gap between single-family houses and flats has widened since the pandemic began. The investment function of housing became prominent once again for wealthier households during the high inflation periods observed during the pandemic. The major conclusion drawn from this study is that the housing market deepened the existing inequalities in society during the current pandemic.
期刊介绍:
The Asia-Pacific Journal of Regional Science expands the frontiers of regional science through the diffusion of intrinsically developed and advanced modern, regional science methodologies throughout the Asia-Pacific region. Articles published in the journal foster progress and development of regional science through the promotion of comprehensive and interdisciplinary academic studies in relationship to research in regional science across the globe. The journal’s scope includes articles dedicated to theoretical economics, positive economics including econometrics and statistical analysis and input–output analysis, CGE, Simulation, applied economics including international economics, regional economics, industrial organization, analysis of governance and institutional issues, law and economics, migration and labor markets, spatial economics, land economics, urban economics, agricultural economics, environmental economics, behavioral economics and spatial analysis with GIS/RS data education economics, sociology including urban sociology, rural sociology, environmental sociology and educational sociology, as well as traffic engineering. The journal provides a unique platform for its research community to further develop, analyze, and resolve urgent regional and urban issues in Asia, and to further refine established research around the world in this multidisciplinary field. The journal invites original articles, proposals, and book reviews.The Asia-Pacific Journal of Regional Science is a new English-language journal that spun out of Chiikigakukenkyuu, which has a 45-year history of publishing the best Japanese research in regional science in the Japanese language and, more recently and more frequently, in English. The development of regional science as an international discipline has necessitated the need for a new publication in English. The Asia-Pacific Journal of Regional Science is a publishing vehicle for English-language contributions to the field in Japan, across the complete Asia-Pacific arena, and beyond.Content published in this journal is peer reviewed (Double Blind).