Abstract

This study attempts to estimate different characteristics of rent benefits generated by the low-income households living in public rental housing in Seoul by income level and supply type, and suggest implications of findings. For this purpose, rent benefits of people who resides in public housing are estimated by the market price approach using Panel Survey of Seoul Housing & Communities Corporation and Korea Housing Survey of Ministry of Land, Infrastructure and Transport both released in 2020. According to the findings, rent benefits provided by public rental housing are significant in relation to long-term public Jeonse (SHift), apartment complexes and, geographically, the southeast area where the market rents are relatively high. With regard to income, benefits are noticeable especially in low-income households, which confirms that public rental housing is a very effective tool for redistribution of income. In sum, the findings show that reduction in housing expenses and subsequent increase in disposable income, which can be happened by households moving into public housing, is expected to induce changes in people’s non-rent spendings and bringing in great value and life satisfaction.

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