Housing Affordability Index Calculation Integrating Income Inequality in Turkey

Empirical Economics Letters, Vol. 10, No. 4, pp. 359-367, April 2011

9 Pages Posted: 6 Feb 2012 Last revised: 28 May 2016

See all articles by Mehmet Asici

Mehmet Asici

Ministry of Industry and Technology

Ozlem Yilmaz

Department of Business Administration

Ali Hepsen

Istanbul University - Faculty of Business Administration, Department of Finance

Date Written: February 1, 2011

Abstract

This paper is the first attempt that computes Housing Affordability Index (HAI) for an emerging country’s housing market. The calculation is based on a method that takes into account the regional and income differences through putting income distribution and house price distribution simultaneously in the model. We use data for the biggest seven cities of Turkey for the time period of June 2007-December 2009. Results indicate that housing is still unaffordable for households with average incomes in Turkey.

Keywords: Housing, Income Distribution, Turkey

JEL Classification: R10, R31, R21

Suggested Citation

Asici, Mehmet and Yilmaz, Ozlem and Hepsen, Ali, Housing Affordability Index Calculation Integrating Income Inequality in Turkey (February 1, 2011). Empirical Economics Letters, Vol. 10, No. 4, pp. 359-367, April 2011, Available at SSRN: https://ssrn.com/abstract=1999405

Mehmet Asici (Contact Author)

Ministry of Industry and Technology ( email )

Ankara, Ankara
Turkey

Ozlem Yilmaz

Department of Business Administration ( email )

Ali Hepsen

Istanbul University - Faculty of Business Administration, Department of Finance ( email )

Istanbul
Turkey

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