Empirical Investigation of Owner-occupiers' Reinvestments in Housing: the Case of Ankara, Turkey

Abstract

In Turkey, reinvestments in the existing housing stock are entirely dependent on households' decisions in the free market. There are no policies to consider reinvestment processes, and the body of knowledge on households' reinvestment decisions is scant. Understanding how individual reinvestment decisions are determined is vital to devise policy measures to improve the condition of the existing housing stock and neighbourhoods. In this study, an attempt is made to identify the basic motivations and factors underpinning the owner-occupants' performed and planned reinvestments in the apartment flats of Ankara. The results display that consumption considerations, particularly circumstances of necessity and urgency, are the basic motivation for undertaking reinvestment works among the surveyed owner-occupants. Higher household head age, shorter duration of occupancy, higher house value and maintained installations and infrastructure in common parts of the apartment blocks are displayed to increase the probability of having undertaken reinvestment works. Also, perception of the dwelling to be in disrepair and landscaped common outdoor space of the apartment are identified to increase the probability of having reinvestment plans for the future. The analysis suggests that policy measures are required both to trigger reinvestment capacities of households and to monitor the tendencies of reinvestments.