OECD Data: Turkey’s Rent Prices Soar 66% in a Year

Turkey’s rental market has reached alarming new heights. According to the latest data from the Organisation for Economic Co-operation and Development (OECD), the country’s rent price index surged 66.4% year-on-year in the third quarter of 2025. In stark contrast, the OECD average rose just 6.2% in the same period, highlighting a deepening divergence.

A Sharp Rise in Turkey’s Rent Index

The OECD tracks rental costs using a base year of 2015 (indexed at 100). Turkey’s rental price index, which stood at 954.5 points in Q3 2024, skyrocketed to 1,588 points by Q3 2025.

This represents an unprecedented 1,438-point gap compared to the OECD average, which only climbed modestly from 141 to 149.8 points during the same timeframe.

In practical terms, rents in Turkey have increased nearly 1,500% since 2015, while the OECD average reflects a much smaller 49.8% rise over the past decade.

OECD Ranking: Turkey at the Top

Among OECD countries, Turkey ranks as the clear outlier with the fastest rent increases. The next closest countries—Hungary (204.6), Lithuania (184.1), and Iceland (177.7)—remain far below Turkey’s inflated index level.

This discrepancy underscores how Turkey’s housing market is structurally diverging from its global peers, creating significant affordability challenges for citizens.

Drivers Behind Surging Rents

Economists and analysts point to several interconnected factors fueling Turkey’s rent crisis:

• Housing Shortage: Insufficient supply of new residential units, particularly in urban centers like Istanbul, Ankara, and Izmir.

• High Demand: Rapid urban migration and population growth continue to push demand beyond available housing stock.

• Economic Uncertainty: Persistent inflation and volatile currency markets are pushing property owners to hedge risk by hiking rents.

Social Impact: From Students to Families

The rent surge is no longer just a statistical anomaly—it has become a daily struggle for millions of households.

• Low-income families are increasingly priced out of city centers.

• University students are struggling to find affordable accommodation, pushing many into overcrowded dormitories or shared housing.

• Single-income households face shrinking options, often forced into longer commutes or lower-quality living conditions.

This trend has sparked concerns over a widening housing inequality gap, with vulnerable groups carrying the heaviest burden.

The Bigger Picture

The fact that Turkey’s annual rent increases are 11 times higher than the OECD average is not only an economic red flag but also a pressing social challenge.

Housing affordability is now directly tied to broader economic stability, influencing consumption, labor mobility, and overall quality of life. Unless addressed through structural reforms, urban development initiatives, and rental market regulation, the crisis is likely to deepen.