Parents’ Experiences and Perception of Supporting Adult Children’s Housing Expenses

Abstract

This study illuminated the housing cost problem of young people from the perspective of their parents’ generation, and analyzed the influence of the youth housing problem on the economic conditions and preparation for retirement of the parents generation. In February and March 2021, an online survey was conducted to 500 parents who have provided housing support to their 20-39 year-old unmarried children. Major findings are as follows. (1) It was found that 36% or more of the respondents spent 100 million KRW or more to support their children’s housing expenses. (2) To support children’s housing expenses, 39.8% had to cut other expenses, 31.2% took out loans from financial institutions, and/or 27.6% disposed assets. (3) More than 32% expected that they would have to support their children’s housing expenses for two more years or more. (4) More than 68% perceived that the housing cost support for their children was burdensome, and more than 67% responded that the support for the children’s housing cost had an effect on their preparation for later life. The findings imply that the housing policy for youth can also affect their parent generation’s preparation for old age, and furthermore, the elderly housing problems.