After the high-speed globalization attack, the interrelations between countries have increased significantly, and local economies have become vulnerable to global economic developments. Despite the successful monetary policies in the 2000s, the Turkish Lira has severely depreciated against foreign currencies in the last decade. Thus, the exchange rate pass-through (ERPT) to domestic prices and its relationship with other macroeconomic variables has become a hot topic for governments and scholars in the literature. However, this pass-through effect on the Turkish Construction Industry and the Housing Market is minimal, although they play a pivotal role in the Turkish economy. With Vector Autoregression (VAR) models analyzing the collected monthly data between 2010 and 2020, this study reveals (1) the ERPT to housing unit prices in Turkey (hup1) and Istanbul (hup2), (2) the change in this pass-through effect during economic stabilization, and fluctuation in the Turkish economy. Moreover, this thesis uncovers (3) the ERPT to Construction Cost Index (cci1) and its material component (cci2) between 2015 and 2020. As a result of Variance Decomposition (VD) and Impulse Response Function (IRF), the housing mortgage rate’s (hmr) effect on hup2 is much more significant than its effect on hup1 in the first two years. However, there is no significant difference between the nominal exchange rate’s (exr) effects on these prices in the same period. Besides, the effects of hmr and exr diminished during economic stabilization. Moreover, the ERPT to cci1 is greater than the ERPT to cci2 at the end of the first year.