Areas with higher levels of education have higher housing prices and residential expenses, encouraging residents to rent a home rather than buy one. (Image: Yonhap)
SEOUL, Dec. 26 (Korea Bizwire) — Areas with a higher number of households that pay monthly rent for housing have more schools, while areas with residents who own their homes have more hospitals.
In addition, in areas with a high proportion of households living in rented homes, there is a trend towards an increase in home ownership.
The Korea Housing Finance Research Institute (KHFRI) revealed on Tuesday that a 1 percent increase in the number of households that pay monthly rent leads to 0.1803 percent increase in the number of schools in the following year.
Areas with higher levels of education have higher housing prices and residential expenses, encouraging residents to rent a home rather than buy one.
An increase in the number of households that pay monthly rent leads to larger number of students, increasing demand for schools.
The institute also showed that a 1 percent increase in the number of homeowners leads to a 0.26 percent increase in the number of hospitals, as well as a 0.1272 percent increase in population in the following year, indicating the area has a better residential environment.
Homeowners tended to be older, which explains the increasing number of hospitals in the area.
Areas with an increasing number of renters also had an increase in gross regional domestic product, indicating that residents have followed their companies to move into a more active industrial economy.
In addition, a relative decrease in residential expenses for monthly rent households allowed them to invest more in consumption, resulting in a higher number of culture, welfare, and other facilities for consumers.
Areas with a higher rate of housing leases led to a simultaneous increase in the number of homeowners starting in the following year, with more vivid results after two to four years.
“This trend shows that leases are working as a mechanism that helps residents move on to buy homes,” said Jang Han-Ik, a researcher at the KHFRI.
“To increase the number of home-owning households, aid packages that directly support buying homes should be put in place, and the younger generation and vulnerable groups should be provided with more opportunities to lease homes.”
H. M. Kang (hmkang@koreabizwire.com)
