Neighborhood effects of housing program using Jeonse in Korea
International Journal of Housing Markets and Analysis
ISSN: 1753-8270
Article publication date: 6 July 2020
Issue publication date: 1 April 2021
Abstract
Purpose
This study aims to introduce the Youth Jeonse Rental Housing Program using the unique characteristics of the Korean housing market to explain its theoretical value in the current theoretical landscape of public housing and to identify the effect of the program on the regional housing price.
Design/methodology/approach
This study uses three hedonic price models on the basis of Korea’s housing market, namely, own, jeonse and rent models. Moreover, it uses the hierarchical linear model to include both house- and region-level variables.
Findings
Analysis shows that youth rental housing has no effect on falling prices in the region unlike long-term rental housing. Thus, the policies using regional tenure system are more effective in the social mix than existing public housing policies.
Originality/value
This study introduces the program using Korea’s unique tenure system called jeonse, arguing its advantages for the supplier, recipients and regional neighborhoods. Suppliers can easily provide affordable housing at a low economic and administrative cost, whereas recipients can easily mix socially, have broad housing choices and a fighting chance for a stable life. Additionally, this policy has a low negative impact on the region. Furthermore, this study theoretically presents the potential for mixed paths other than demand or supply policies. It introduces and analyzes special policy objectives for youth housing problems.
Keywords
Acknowledgements
This work was supported by the Yonsei University Research Fund(Post Doc. Researcher Supporting Program) of 2020 (project no.: 2020-12-0035).
Citation
Yun, S. (2021), "Neighborhood effects of housing program using Jeonse in Korea", International Journal of Housing Markets and Analysis, Vol. 14 No. 2, pp. 305-316. https://doi.org/10.1108/IJHMA-03-2020-0025
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited