Year: 2024
Type: article
Study design: Observational Study
Abstract: Since the end of 2019, the so-called “young generation’s all-in loans,” which means that many people have taken on significant debt to purchase real estate, have emerged as a social issue during the surge of housing prices. Approximately 80% of the average debts for the young accounted for loans from financial institutions and the main reasons to raise their debts were caused by the surge of housing prices and the craze for investments in real estates. The sense of urgency among young homebuyers triggered by skyrocketing housing prices has rapidly intensified their desire for homeownership, now accounting for a significant portion of household loans. This study was set to understand the phenomenal desire from the perspectives of housing insecurity from lease, the burden of housing costs and the satisfaction with housing conditions. Particularly, in Seoul, where the increase in housing prices was the highest, the poverty rate of the young stands at 55.6%, highlighting the need for studies focused on younger generations living in Seoul. This study examined young heads of non-homeowning households in Seoul and their desire for homeownership. In particular, this study analyzed the desire might be influenced by the three perspectives. The analysis revealed that the housing insecurity had a statistically positive effect on the desire for homeownership, while the satisfaction with housing conditions had a statistically negative effect. These findings suggested that the concern among young heads of non-homeowning households in Seoul over the possibility of landlords refusing to renew contracts or raising rent after lease expiration as well as the anxiety about not recovering their deposit due to the landlord’s circumstances could drive up their desire for homeownership. Additionally, the less secure they feel about fire safety and the poorer lighting and ventilation conditions are in their homes, the more likely they are to lift the need to purchase a home. This study attempted to present various implications through the analysis results.
Source: Journal of Real Estate Analysis
Authors: Sangwoo Hong, Mirae Park
Language: English
Topic: Housing Market and Economics
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405333219