Comprehensive Evaluation of Housing Support Programs: Policy Directions and Challenges for Addressing Low Birth Rates

Published onJuly 22, 2025
Published by Economic Industrial ProgramEvaluation Division

   Housing stability is a critical prerequisite for major life decisions such as marriage and childbirth. In light of this, the Korean government has expanded its housing support policies targeting newlyweds and young adults. However, these measures have yet to produce a meaningful rebound in birth outcomes. Against this backdrop, this report evaluates Korea’s key housing support programs, including public housing supply, financial assistance mechanisms, housing cost subsidies, and the housing subscription system. It also identifies core challenges and presents policy recommendations focused on (1) stabilizing housing prices and (2) designing housing policies linked to childbirth.
   The analysis finds that the Ministry of Land, Infrastructure and Transport (MOLIT) and the Korea Land & Housing Corporation (LH) should accelerate housing starts during market downturns to maintain continuity in long-term supply plans and bolster housing stability. Although the government announced plans to supply 500,000 public rental units and 500,000 public sales units, a significant portion has been met through Jeonse-based rentals (a lump-sum deposit lease system unique to Korea), reflecting an emphasis on short-term performance rather than a substantive expansion of housing stock.
   In addition, while young adults and newlyweds tend to prefer financial assistance among housing support options, policies aimed at encouraging childbirth through housing finance may produce adverse side effects—such as rising household debt, reduced consumption and investment, and upward pressure on housing prices. Accordingly, more sophisticated policy design is needed, taking into account both macroeconomic stability and intergenerational equity.
   Although public rental housing size standards are applied uniformly nationwide, they may not reflect local conditions and demand, particularly in non-metropolitan areas. To attract newlyweds to these regions, there is a need to provide larger, tailored public rental units. Furthermore, efforts to raise birth rates should go beyond easing income thresholds or expanding priority and special supply quotas. Instead, more tangible, birth-linked housing incentives should be considered, including granting priority access based on the number of children, easing requirements for homeownership conversion, and offering purchase price discounts.