Neighborhood Effects of Buy-to-Rent and Build-To Rent Public Housing

34 Pages Posted: 6 Jan 2024

See all articles by Changsu Ko

Changsu Ko

Korea Institute of Public Finance

Jinsoo Bae

Korea Institute of Public Finance

Heepyung Cho

Korea University

Abstract

This study analyzes the impact of new public rental housing on adjacent neighborhoods, focusing on their average consumption levels and population share of individuals aged 20 to 59 years. Using administrative data on public housing and credit card usage data with detailed geography, we examine the heterogeneous effects of two types of public housing: buy-to-rent and build-to rent. Buy-to-rent housing exhibits no significant effects on neighborhoods within its 500-meter radius. In contrast, build-to-rent housing reduces the consumption level by 1.9% and the share of the working-age population by 0.3 percentage points. The negative effects increase the closer the neighborhood is to public housing. The disparity in neighborhood effects between the two housing types can be partially attributed to the difference in the size of public housing units, but this factor does not entirely explain the variation.

Keywords: public housing, consumption, neighborhood composition, sorting

Suggested Citation

Ko, Changsu and Bae, Jinsoo and Cho, Heepyung, Neighborhood Effects of Buy-to-Rent and Build-To Rent Public Housing. Available at SSRN: https://ssrn.com/abstract=4685696 or http://dx.doi.org/10.2139/ssrn.4685696

Changsu Ko

Korea Institute of Public Finance ( email )

336 Sicheong-Daero
Sejong
Korea, Republic of (South Korea)

Jinsoo Bae

Korea Institute of Public Finance ( email )

79-6 Garak-Dong, Songpa-Ku
Seoul
United States

Heepyung Cho (Contact Author)

Korea University ( email )

1 Anam-dong 5 ka
Seoul, 136-701

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