Journal of the Human and Social Sciences Researches, vol.9, no.5, pp.3698-3722, 2020 (Refereed Journals of Other Institutions)
A house is a whole with versatile components such as social, cultural, economic, legal, and technological factors. Because of the decline in interest rates and increasing liquidity in the globalized financial markets, housing investments have attracted some of the capital flows to this field. The real effects of the housing market are examined in terms of the increases in income, the general level of savings and investments, and the level of employment and labour mobility. Empirical studies on the housing demand have mainly aimed to investigate the relationship between the prices of houses and some macroeconomic indicators. Therefore, the number of studies conducted at the provincial level in the housing market is quite low. In this context, the main purpose of this study is to investigate the key factors that affect the decisions of individuals to buy a house in the near future, in Van province, Turkey. In the demand equation, the effects of a number of hedonic (non-price) factors such as gender, marital status, income, age, household size, location of the house, type of the house, proximity to attraction centres on the housing demand are analysed. For this purpose, in order to analyse the purchasing decisions of consumers in the housing demand function, a questionnaire was applied to 450-randomly selected people who live in the city centre. According to logit model estimation results, it is observed that factors such as gender, marital status, age, working status, education, and income increased the likelihood of owning a house. Further, while the houses in the centre are more demanded, proximity to the places such as workplace, school, and the hospital is much less effective than the security, rental income, and investment factors, in such demand.