
Demographic Dynamics and the Housing Market: A Panel Data Analysis on the Effects of Urbanization and the Working-Age Population
Chapter from the book:
Dikici,
M.
S.
(ed.)
2025.
Current Issues in Consumer Behavior.
Synopsis
This study aims to examine the impact of urbanisation rate and active population on house sales by province in Turkey between 2013 and 2023. In this study, which is conducted with panel data analysis method, model estimates are calculated using Driscoll-Kraay standard errors. The findings of the study show that the increase in the urbanisation rate significantly increases house sales, while the growth in the active population strengthens the demand for housing. In particular, in provinces with rapidly increasing urbanisation, there is significant mobility in the housing market, while the increase in the active population ensures the continuity of housing demand. These results reveal that the housing market is affected not only by economic but also demographic and spatial factors. The study highlights the importance for policy makers to develop strategies that take into account the effects of urbanisation dynamics and changes in population structure. The results emphasise the need to implement more effective policies for housing demand, especially in rapidly urbanising regions.