Housing crisis deepens in Istanbul as rent costs outpace quality of available homes

Rent prices in Istanbul have surged to alarming levels, forcing many residents into poor-quality homes for steep costs and escalating the housing crisis.

People searching for housing within a budget of $290 are often left with properties that lack basic amenities, such as damp basements, tiny windowless rooms or severely deteriorated structures.

• In Beyoglu Ornektepe, a 1+1 apartment with no kitchen cupboards or proper flooring is listed for $175.
• In Eyup, another poorly maintained apartment is being rented out for $290.
• In Esenler, a 538-square-foot apartment advertised as suitable for multiple people costs $230, though it barely accommodates one person.
• In Fatih, a cramped 215-square-foot flat is listed for $175.
• In Fikirtepe, a 1+1 apartment in a transformation zone is priced at $175, despite its poor condition.

Many of these properties have been described as unhabitable by potential tenants, as reported by Hurriyet.

According to listings, residents have expressed disbelief, wondering how anyone can live in such poor conditions.

Dramatic rent increases in Istanbul push residents into substandard housing

A joint report by BETAM and sahibinden.com reflects a nationwide spike in rental prices, with the average cost per square meter rising by 47.1% in August 2024. In Istanbul, the average rent for a 1,076-square-foot apartment now stands at $712, leaving more people stuck in poorly maintained and undersized apartments.

The surge in rent prices, coupled with the poor condition of many properties, has left residents with limited options. Those seeking affordable housing are forced into substandard homes just to have a roof over their heads.

Economic pressures compound Istanbul’s housing crisis

The overall cost of living in Istanbul has also risen significantly. A recent report by the Istanbul Planning Agency (IPA) revealed that the cost of living for a family of four increased to $2,085 in September 2024, marking a 60.3% rise from the previous year.

Essential goods such as food and household items have also seen steep price hikes, further stretching household budgets.

In addition to rising living costs, inflation in Istanbul reached 59.18% in September 2024, with retail prices increasing by 3.9% that month alone.

This inflationary pressure is making it even more difficult for residents to find affordable homes, while essential items like food and household goods are becoming less affordable.

Türkiye leads OECD countries in rent increases

Adding further context to the housing crisis, OECD data shows that Türkiye has experienced the highest rent increases among OECD countries, with a 66% rise in 2024.

The removal of the 25% rent cap earlier this year has further fueled tensions between landlords and tenants, exacerbating the housing crisis.
While inflation affects all aspects of life, rent prices have now pushed many Istanbul residents to the brink.

Key rent increases in major cities:

• Istanbul: Annual rent increase of 46.7%, with the average price per square foot at $0.7. For a 1,076-square-foot apartment, the average rent is $700.
• Ankara: Annual rent increase of 56%, with the average price per square foot at $0.5. For a 1,076-square-foot apartment, the average rent is $525.
• Izmir: Annual rent increase of 62.5%, with the average price per square foot at $0.6. For a 1,076-square-foot apartment, the average rent is $640.

In newer, earthquake-resistant buildings with better living conditions, rents are often double these figures.