Rethinking Financialisation from a Housing Industry Perspective: Delayed Asset Price Inflation in Turkey

This paper is an exploration of housing financialisation by drawing upon the productive dynamics of the housebuilding industry. Housing financialisation literature has two distinct branches, one focusing on the macroeconomic mechanisms through which the imbalances in the housing market could reflect deeper macroeconomic fragilities. The other branch puts the emphasis on the commodification of housing as a commodity, mostly due to the withdrawal of the state as a provisioner. This study bridges the gap between these two literatures on housing financialisation by introducing the productive dynamics of the housebuilding industry itself as an explanatory factor, which has not been addressed by either of those literatures. It has two distinct but interrelated contributions. First, it provides a case that can demonstrate the various ways in which the commodification of housing can take place without necessarily the withdrawal of the state by using Turkey as an example. Second, by showing how this development took place in the context of public land availability to accommodate increasing supply and the sectoral interlinkages with the more “productive†energy sector, it explains why the disruptive macroeconomic effects of that strategy could be delayed for a prolonged period.