Despite Korea’s remarkable macroeconomic success over the past three decades, concerns remain regarding housing market conditions for low income households, especially in high-cost Seoul.
Many countries, Korea included, are shifting at least some low-income housing assistance from supply-side “bricks and mortar” programs, to demand-side housing allowances (“vouchers.”)
Details matter. KRIHS and UW researchers (and others, e.g. from Cambridge University, Delft University) are distilling lessons learned from Korea, U.S., UK, Netherlands, numerous other countries.
Research and policy questions include:
- Pros and cons of alternative subsidy approaches: costs, benefits, distributional outcomes,
- market-wide spillovers, fiscal implications. Details of voucher formulas, program administration.
- Collateral actions that are needed to get the most from a housing allowance, e.g. changes in land use and development regulations to ensure a sufficient supply response.