This study aims to reveal whether social capital has an effect on the housing price index in Turkey, which is a developing country. The research was carried out by using the data on the basis of 81 provinces of Turkey in a 12-year period covering the years 2007-2018.
The data were subjected to panel data regression analysis and the related models were tested using the Driscoll-Kraay (1998) Estimator.
According to the results of the analysis, it was understood that there is a negative and significant relationship between social capital (SC1) and the housing price index. The results were corroborated by susceptibility testing. As the level of social capital rises in the provinces in Turkey, the manipulative and opportunistic behavior tendencies of individual and corporate house sellers decrease. These results support the principal-agent theory and theory of moral hazard, which constitute the theoretical background of the study.
No study has been found in the literature on the effect of social capital on housing prices. This situation constitutes the main motivation source of the study and shows its originality.