Implications of Household Reinvestment Behaviour

Reinvestments refer to repairs and maintenance activities, as well as rehabilitation investments undertaken with the purposes of improving existing housing assets and standard of life (1). Reinvestment behaviour of household (Hh) in housing has been investigated for more than four decades in the literature. Macro implications of individual behaviour however, remain largely neglected. Hhs’ reinvestment behaviour and expenditures could have impacts in the depreciation of the housing stock, quality of housing and neighbourhood services, residential adjustment options, housing supply, etc. In Turkey, although substantial capital is engaged in reinvestments in the existing housing stock, no tool or mechanism exists associated with the monitoring of reinvestments. Yet, Hhs’ reinvestment decisions and expenditures are likely to play a crucial role in trajectory of Turkish housing stock, neighbourhoods, and in overall economy. Furthermore, in the current phase of urbanization in Turkey there are numerous reasons that necessitate purposeful design and implementation of reinvestment policies. Understanding Hh reinvestment behaviour and identifying its macro implications would contribute to the monitoring of the economic system, as well as to urban decision-makers and planners in designing finer policies and tools of intervention to tackle problems of the existing housing stock and neighbourhood environments.