An Analysis of Factors Contributing to Relocating for Low-Income Households in Seoul

Abstract

Since housing has a significant meaning as a place for family living, the government has promoted various housing policies at the national level to improve the quality of people’s housing. The purpose of this study is to highlight the housing problems of urban low-income households by observing the movements of low-income households and the factors that force them to move. In the empirical analysis, a move probability model was constructed based on the determinants of low-and medium-high-income households for moving to find the factors they consider when they decide to relocate. The effects of explanatory variables--personal attributes, household attributes, and regional attribute-affecting the housing movement of low- and medium-high-income households were then analyzed. Consequently, it was found that relocation in low-income households is affected largely by their jobs. It was also apparent that the ample supply of rental housing contributes to housing stability, and redevelopment has an impact on their moving decisions. Additionally, despite their low tendency to move, low-income households opt to move to other areas if housing prices rise due to redevelopment or other real estate policies. These results suggest that more innovative housing policies are needed for low-income households.