An Analysis of Resident Rent Benefits of Public Housing Considering Surrounding Rent Prices

The purpose of this study was to figure out rental benefits of the public rental housing by a household level and identify regional differences. This study numerically presented economic benefits produced by occupying the public rental housing in order to show implications for taking upcoming measures. The results of this study are as follows. First, the rental benefit of the public rental housing marked 19,500 won/m2 per month, which was 29% of private rental market prices in the neighborhood. Second, the rental benefit of the public rental housing differed from regions. In particular, there was a clear regional difference between permanent and national rental housings. Third, the more expensive the rent was than the market prices in the neighborhood, the lower the rental benefits and the longer the resident period, the higher the rental benefits. Lastly, the geographically weighted regression model was used to figure out the effect of the improved model and the regional difference from influential factors. The results numerically showed that the rent of the public rental housing was very cheap and suggested the necessity of regional distribution for the public rental housing and of the rent connected to the market price.