The government has maintained political basis of direct public housing supply by producer aiding method to stabilize low-income residence. Yet, the number of scholarly researches on the efficiency of public housing policy whether it has accomplished its very purpose, has been limited. Most national studies performed on this topic are focused on housing price fluctuations, and even few studies on policy effects are on quite principal level. Thus, the necessity on substantive researches is arisen.
In this study, an empirical approach to policy effects of public housing supply is attempted. Deviated from perspectives of existing researches, effects of public housing supply on housing market are interpreted in crowding-out effect, not in price, viewpoint. Analyzing domestic public housing supply policy based on crowding-out effect is to provide scholastic judgment on policy’s effectiveness. Main results and political implications are as follow.

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Date published: 13.09.2016 | 11:37
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The Effect of Public Housing Supply on the Private Housing Supply

The government has maintained political basis of direct public housing supply by producer aiding method to stabilize low-income residence. Yet, the number of scholarly researches on the efficiency of public housing policy whether it has accomplished its very purpose, has been limited. Most national studies performed on this topic are focused on housing price fluctuations, and even few studies on policy effects are on quite principal level. Thus, the necessity on substantive researches is arisen.
In this study, an empirical approach to policy effects of public housing supply is attempted. Deviated from perspectives of existing researches, effects of public housing supply on housing market are interpreted in crowding-out effect, not in price, viewpoint. Analyzing domestic public housing supply policy based on crowding-out effect is to provide scholastic judgment on policy’s effectiveness. Main results and political implications are as follow.

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