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Türkiye Ranks Fifth in Europe for Housing Cost Burden as Rents Soar

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Housing-related costs now consume 21.1% of disposable household income in Türkiye, making it the fifth-most housing-burdened country in Europe, according to Eurostat’s 2024 report. The data places Türkiye just behind Denmark, Sweden, Germany, and the Czech Republic, and ahead of several wealthier nations.

Housing Share Rises Sharply in Six Years

In 2017–2018, housing costs represented only 18.2% of Turkish households’ disposable income—the lowest in the past decade. However, due to rapidly increasing rents, soaring utility bills, and stagnant real wages, that share has climbed by nearly 3 percentage points by 2024.

Disposable income refers to the money households have left after taxes and compulsory deductions, used for essentials like housing, food, and transportation. Türkiye’s rising housing burden signals decreasing financial flexibility for households, especially for lower-income groups.

Türkiye Surpasses High-Income Countries in Housing Costs

Denmark tops the Eurostat list, where households spend 26.6% of disposable income on housing. It is followed by Sweden (24.6%), Germany (24.5%), Czech Republic (22.1%), and Türkiye (21.1%).

Other countries with lower burdens include:

  • Finland – 20.9%

  • Netherlands – 20.5%

  • France – 18.5%

  • Estonia – 19.5%

  • Italy – 13.6%

  • Croatia – 13.0% (lowest in the survey)

This ranking shows that housing affordability in Türkiye is now more strained than in many higher-income EU countries.

TurkStat: Housing Now Dominates Household Spending in Türkiye

Türkiye’s own TurkStat (TÜİK) confirms this trend. In 2023, housing and rent took up 23.9% of household expenditures, outpacing:

  • Transportation (21.9%)

  • Food and beverages (20.6%)

  • Education (1%)

  • Culture, entertainment & sports combined (1.9%)

This marks a notable shift from 2022, when food (22.8%) was the top expenditure category, followed by housing (22.4%). The data suggests housing costs are rising faster than other essential goods and services, compressing household budgets.

A Growing Socioeconomic Challenge

Housing is a non-discretionary expense, meaning it can’t be easily reduced when income declines. As rent and utilities continue to rise across Türkiye—particularly in urban areas like Istanbul, Ankara, and Izmir—many families are forced to cut back on healthcare, education, and long-term savings.

With homeownership becoming increasingly unaffordable and social housing limited, rental markets are absorbing a larger share of income, worsening inequality.

Experts warn that without policy reforms—such as rent regulation, affordable housing development, and income-support mechanisms—Türkiye’s housing affordability crisis could hinder long-term social mobility and economic resilience.

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