Rental Housing Crisis Deepens in Turkey

As university students continue their search for affordable housing, public sector employees are also finding it increasingly difficult to live in major cities due to soaring rental prices. Representatives of the real estate sector warn that the combination of civil servant relocations, university placements, and the ongoing wedding season is creating a surge in housing demand that could trigger yet another wave of rent hikes.

Growing Pressure in the Rental Market

According to experts, Turkey’s rental housing market is facing extraordinary demand in late summer and early fall. This period typically coincides with the arrival of newly assigned government employees, students settling into universities, and families beginning new households after weddings.

Hakan Akdoğan, Founding President of the All Entrepreneurial Real Estate Consultants Association (TÜGEM), highlighted the pressure on the market:

“We are seeing a significant demand in the rental housing sector. In some regions, the increases will vary, but by October, we could see rents rise by as much as 30%.”

This projection underscores concerns that Turkey’s housing affordability crisis may worsen before the year ends.

Major Cities Face the Heaviest Burden

While rental increases are being felt nationwide, the problem is particularly acute in Istanbul, Ankara, and Izmir, where both student populations and job opportunities are heavily concentrated.

Speaking to Ekonomim, Akdoğan explained that Istanbul’s most affected districts are those with a high concentration of students:

“Rental prices will move sharply in neighborhoods like Beşiktaş, Sarıyer, and Mecidiyeköy, where student demand is the strongest.”

In these areas, landlords are expected to capitalize on seasonal demand by raising prices further, putting additional pressure on young renters and their families.

Rents Already up 40% in Istanbul

The sharp rise in Istanbul’s rents is not a distant projection—it’s already visible in the data.

Mustafa Hakan Özelmacıklı, a member of the Istanbul Chamber of Commerce, noted that from January through September 2025, rents in Istanbul have already increased by nearly 40%:

“During assignment periods and as university students settle in, demand rises significantly. This demand feeds directly into rental prices.”

With demand set to remain strong through October, Özelmacıklı’s assessment suggests that the situation could deteriorate further before stabilizing.

Lifestyle Changes and Shared Housing

The surge in rental costs is not only a financial challenge but also a cultural shift. In Istanbul, the housing crisis is beginning to reshape how people live.

Shared apartments—once popular mainly among students—are now increasingly common among young professionals and even some public sector workers. Splitting rent has become a necessity rather than a lifestyle choice.

Real estate agents report that room rentals and co-living spaces are becoming more sought after, as individuals and families attempt to adapt to a market where traditional rental options are increasingly out of reach.

The Widening Gap Between Rent and Homeownership

The affordability crisis is amplified by the growing gap between rental prices and homeownership costs. While rents in Istanbul have surged, the prices of homes for sale have reached astronomical levels, creating a mismatch that leaves few viable options for middle-class families.

Some listings now show luxury apartments renting for over 2.25 million TL annually, while certain properties for sale are priced as high as 6 billion TL. This imbalance illustrates how deeply skewed the real estate market has become.

Seasonal Demand Fuels Volatility

Industry representatives explain that seasonal cycles play a critical role in shaping the housing market.

• Civil servant relocations: Government employees assigned to new cities often look for rental housing in August and September, creating sudden spikes in demand.

• University placements: Tens of thousands of students relocate to major cities each year after the YKS exam results, concentrating demand in specific neighborhoods.

• Wedding season: Newly married couples searching for rental homes further tighten the market during the summer and fall months.

When these three cycles overlap, as they are doing now, housing markets experience sharp and rapid price adjustments.

What Lies Ahead?

Looking forward, experts warn that the structural problems driving Turkey’s housing crisis remain unresolved. Inflationary pressures, high construction costs, and insufficient affordable housing supply are expected to keep rents elevated for the foreseeable future.

Unless significant policy measures are introduced to expand the supply of rental housing, the market may continue to rely on seasonal fluctuations and opportunistic pricing by landlords, leaving both students and employees vulnerable.