A 10% increase in apartment rental prices in a district leads to a decrease of 0.01 in the total fertility rate and 0.09 in the crude birth rate. (Image courtesy of Yonhap)
SEOUL, Nov. 13 (Korea Bizwire) – A new government study has revealed stark regional differences in factors affecting South Korea’s declining birth rates, with housing costs being the primary concern in the Seoul metropolitan area while job insecurity drives low fertility rates in other regions.
The Korea Research Institute for Human Settlements (KRIHS) released these findings on November 12 in a report titled “The Relationship Between Regional Inequality and Low Fertility: Impact of Regional Employment and Housing Instability on Birth Rates.”
According to the research, housing instability factors, such as rising apartment purchase and rental prices, showed a strong correlation with both total fertility rates and crude birth rates in the Seoul metropolitan area. The study found that a 10% increase in apartment rental prices in a district leads to a decrease of 0.01 in the total fertility rate and 0.09 in the crude birth rate.
In contrast, employment instability had a less pronounced effect on fertility rates in the Seoul region. However, in areas outside the capital, long-term job prospects and employment stability emerged as the primary factors suppressing birth rates. The research showed that a 1% decrease in the net youth migration rate in these regions corresponded to a reduction of 0.03 in the total fertility rate and 0.2 in the crude birth rate.
Interviews with young adults outside of major urban areas revealed that while housing costs were less of a concern, many cited poor medical facilities, educational infrastructure, and amenities as obstacles to raising children. Many also pointed to a lack of cultural vitality and diversity as factors driving youth migration away from these regions.
When asked about balanced development policies to boost fertility rates, respondents emphasized the need for high-quality jobs rather than simply increasing the quantity of available positions.
Young people particularly identified the shortage of career development opportunities for women as a key factor limiting regional settlement and family planning. They noted that local employment options for women were largely restricted to clerical positions, office work, temporary jobs, and service industry roles.
The researchers recommended that fertility policies in non-metropolitan areas should be implemented alongside balanced development initiatives that provide stable, promising employment opportunities. They emphasized the particular importance of considering women’s employment opportunities and settlement infrastructure.
For the Seoul metropolitan area, the study urged the expansion of support measures beyond the immediate post-birth period to encompass the entire child-rearing process, addressing the housing stability concerns of young households.
M. H. Lee (mhlee@koreabizwire.com)
