Turkey’s Rent Crisis Deepens as Prices Surge Far Beyond OECD Averages

A new analysis based on OECD data has revealed the alarming scale of Turkey’s rent crisis, showing that housing costs have risen to levels far beyond those seen in comparable economies. Prepared by economic columnist Naki Bakır, the study highlights how rents in Turkey have transformed from a basic living expense into a form of luxury consumption.

According to the analysis, while average rents across the OECD increased by 6.8% in 2025, rents in Turkey soared by an extraordinary 77.1% over the same period. The long-term picture is even more striking, pointing to what Bakır describes as a full-scale price explosion rather than a cyclical fluctuation.

A Housing Issue Turning into a Social Crisis

The housing problem in Turkey is no longer just a macroeconomic indicator; it has evolved into a widespread social housing crisis. Using OECD rent index data, Bakır demonstrates how Turkey has sharply diverged from peer economies, both in annual rent increases and in cumulative long-term trends.

For millions of households, renting a home is no longer merely about meeting a basic need. Rapidly rising rents have significantly eroded purchasing power, reshaping household budgets and intensifying inequality. The data suggest that Turkey’s experience is not simply an extension of global inflationary pressures but a uniquely severe case.

Ten-Year Data Reveals a Historic Surge

The most striking findings in Bakır’s analysis come from the 2015–2025 period, which offers a clear comparison between Turkey and the broader OECD.

Over the past decade:
Across the OECD, average rent increases totaled 48.9%.
In Turkey, rents surged by an astonishing 1,457.7%.

This gap underscores the scale of the divergence. While OECD countries experienced gradual rent increases broadly in line with income growth and inflation, Turkey’s housing market witnessed a dramatic and sustained acceleration. The difference between the two is no longer marginal—it represents a structural rupture.

2025: Rent Increases Far Above Inflation

A closer look at 2025 shows that although rent growth in Turkey slowed slightly over the year, the overall level remained extremely high.

Quarterly data indicate that:
Rent increases eased from 15.5% in the first quarter to 9.6% in the final quarter.
Despite this slowdown, the average annual rent increase reached 77.1%.

Even after adjusting for inflation, the burden on tenants continued to rise sharply. With TURKSTAT reporting annual inflation of 34.88% for 2025, the real increase in rents translated into a 31.3% rise in tenants’ inflation-adjusted housing costs. This means that renters faced a significant real loss of purchasing power, even after accounting for broader price increases in the economy.

Why Rent Caps Are Not Enough

Bakır emphasizes that the scale of the crisis cannot be resolved through temporary legal limits or rent increase caps alone. While such measures may provide short-term relief, they do not address the structural drivers behind soaring housing costs.

According to the analysis, the root causes include:

-Persistent high inflation,
-Insufficient housing supply relative to demand,
-Rising construction and financing costs,
-And long-standing imbalances in urban housing policy.

Without addressing these underlying issues, rent controls risk further distorting the market, potentially discouraging new housing investment and worsening supply shortages over time.

Call for an Urgent and Comprehensive Reform Package

In his conclusion, Naki Bakır calls for an urgent, multi-dimensional reform strategy to prevent the housing crisis from deepening further. He argues that isolated policy tools will not be sufficient given the magnitude of the problem.

Bakır outlines three critical pillars for a lasting solution:

A determined and credible fight against inflation to stabilize costs across the economy.
A rapid increase in housing supply, particularly affordable rental units, to rebalance the market.
A comprehensive and permanent housing reform package, designed to address both short-term affordability and long-term structural issues.

Without decisive action on these fronts, the analysis warns that housing affordability will continue to deteriorate, placing growing pressure on households and increasing social strain.

A Defining Economic Challenge

The OECD-based data makes one point unmistakably clear: Turkey’s rent crisis is not just severe—it is exceptional by international standards. With rent growth vastly outpacing both inflation and global norms, housing affordability has emerged as one of the country’s most urgent economic and social challenges.