Housing price formation after the 2023 Türkiye earthquakes: hedonic and spatial evidence from the Iskenderun housing market

Purpose This study aims to examine how the 2023 Türkiye earthquakes reshaped housing price formation and residential valuation patterns within the Iskenderun housing micro-market. Design/methodology/approach This research uses publicly available micro-market listing data. This study applies hedonic pricing models combined with a Generalized Method of Moments Spatial Error Model to control for unobserved geographical spillovers. Findings Post-disaster properties command a 16.7% price premium. A non-linear, U-shaped vertical price gradient emerged, where both lower and upper floors command premiums relative to middle floors. Additionally, the price advantage associated with centrally located properties declines as building age increases, indicating a horizontal revaluation of residential location after the earthquake. Research limitations/implications This research relies on public listing prices rather than final transaction data because of limited registry transparency, and it is geographically limited to a single micro-market. Practical implications The findings of this study provide critical insights for urban planners, appraisers and policymakers to understand post-disaster market dynamics, support post-disaster housing policy and enhance market resilience in seismically active regions. Originality/value To the best of the authors’ knowledge, this study provides one of the first spatially explicit analyses of post-earthquake housing price formation in the Türkiye context. This study extends hedonic pricing theory by demonstrating how post-disaster risk pricing simultaneously reshapes both vertical and horizontal valuation mechanisms. Specifically, this paper identifies a robust U-shaped floor-level pricing pattern and demonstrates that these effects remain stable across alternative spatial specifications.