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A Cohort Analysis on Falling Homeownership and Rising Tenancy for Younger Generations in Türkiye

Author

Listed:
  • Selçuk Gemicioğlu

    (Van Yüzüncü Yıl University)

  • Hasan Şahin

    (Ankara University)

Abstract

In recent years, there has been a noticeable shift among younger generations in Europe, characterized by a reduced propensity for homeownership and a growing preference for renting residential properties. Younger generations in Türkiye have also experienced a similar trend in homeownership and tenancy. This study aims to decompose the effects of age, period, and cohort (generation) on homeownership and tenancy in Türkiye. In addition, it seeks to uncover factors that may be related to the decline in homeownership and the rise in tenancy among younger cohorts. In this regard, we applied a decomposition analysis on homeownership and tenancy using an age-period-cohort (APC) model for the period of 2006-2020. The findings indicated an inverted U-shaped relationship between homeownership and age, while a U-shaped relationship exists between tenancy and age. The period's effect on homeownership was positive between 2012 and 2016, while its effect on tenancy was negative throughout the entire period. Finally, we found that younger generations had a lower homeownership rate and a higher tenancy rate than older generations.

Suggested Citation

  • Selçuk Gemicioğlu & Hasan Şahin, 2025. "A Cohort Analysis on Falling Homeownership and Rising Tenancy for Younger Generations in Türkiye," Business and Economics Research Journal, Bursa Uludag University, Faculty of Economics and Administrative Sciences, vol. 16(4), pages 379-393, October.
    • Handle: RePEc:ris:buecrj:021715
    DOI: 10.20409/berj.2025.473
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    Keywords

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    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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