Increase in housing supply in the earthquake zone has slowed down rent price increases
A TCMB Blog analysis revealed that the housing mobilization and increasing housing supply in the earthquake zone have slowed down rent increases in the region and in indirectly affected provinces.
According to an analysis published by Central Bank researchers, thanks to the housing mobilization carried out in the earthquake zone and the increasing supply, the rate of increase in rental prices lost momentum in the region and affected provinces.
Housing Supply and Rental Developments in the Earthquake Zone
According to the analysis published on the TCMB Blog, the housing stock in the 11-province earthquake zone decreased significantly after February 6, and this decline led to a rapid rise in rents.
Housing supply in the region was increased with the Construction Mobilization of the Century carried out by the Ministry of Environment, Urbanization and Climate Change.
Effects of Migration Movements on the Rental Market
The impact of the earthquake on the rental market was not limited to the earthquake zone alone; the migration movements that took place increased the demand for rental housing and rents in provinces receiving migration.
Rent increases were felt more noticeably in provinces that are geographically close to the earthquake zone or have had strong migration relations in the past.
TOKİ Housing Production and Share of Building Permits
The number of earthquake houses whose construction was completed by the Housing Development Administration reached 201 thousand at the beginning of 2025 and approximately 434 thousand by the end of the year.
The share of the earthquake zone in Turkey's overall occupancy permits increased from around 12 percent to over 20 percent in 2025.
Slowdown Rates in Rent Inflation
While rent inflation in earthquake provinces remained above other groups in 2023 and 2024, it recorded a slowdown in 2025 when housing deliveries accelerated.
While residential rent increase in the region had surged up to 122 percent, it dropped to 19 percent in the December-July period of this year and fell to 14 percent in indirectly affected provinces.
Employment and Expansion of Supply
With the earthquake housing projects largely completed, construction sector employment declined in the earthquake zone while showing a rapid increase in provinces outside the region.
It is anticipated that this increase in housing supply will spread to a wider geography in the upcoming period and continue to support the slowdown in rent inflation.