@article{ART003318649},
author={Kang, Tae Young and Sanggun Lee and Park, So Jeong},
title={Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2026},
volume={36},
number={1},
pages={7-27},
doi={10.35136/krer.36.1.1}
TY - JOUR
AU - Kang, Tae Young
AU - Sanggun Lee
AU - Park, So Jeong
TI - Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds
JO - Korea Real Estate Review
PY - 2026
VL - 36
IS - 1
PB - korea real estate research institute
SP - 7
EP - 27
SN - 2092-5395
AB - This study empirically examines the determinants of household real estate investment decision using data from the 2024 Survey of Household Finances and Living Conditions conducted by Statistics Korea. Unlike previous studies focusing on the determinants of real estate ownership or asset ratios, this study assumes that investment and ownership decisions in real estate are interconnected . To address this relationship, a bivariate probit model is employed. The estimation results show a correlation coefficient of −0.203 between the error terms of the two decision equations, which is statistically significant at the 1% level. This suggests that unobserved factors influence real estate investment and ownership decisions in opposite ways. The results of the marginal effect estimation show that households located in the Seoul Metropolitan Area have about a 5.6% greater likelihood of investing in real estate. In contrast, owner-occupied households have an approximately 8.1% lower probability of investing compared with renter households. Notably, a rise in income boosts the likelihood of owning real estate by about 10%, and households with married couples have about a 13% higher likelihood of owning a house than single-adult households. While real estate investment and ownership decisions are distinct, they are linked through unobserved factors.
KW - Real Estate Investment Decision;Real Estate Ownership Decision;Survey of Household Finances and Living Conditions;Bivariate Probit Model
DO - 10.35136/krer.36.1.1
ER -
Kang, Tae Young, Sanggun Lee and Park, So Jeong. (2026). Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds. Korea Real Estate Review, 36(1), 7-27.
Kang, Tae Young, Sanggun Lee and Park, So Jeong. 2026, "Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds", Korea Real Estate Review, vol.36, no.1 pp.7-27. Available from: doi:10.35136/krer.36.1.1
Kang, Tae Young, Sanggun Lee, Park, So Jeong "Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds" Korea Real Estate Review 36.1 pp.7-27 (2026) : 7.
Kang, Tae Young, Sanggun Lee, Park, So Jeong. Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds. 2026; 36(1), 7-27. Available from: doi:10.35136/krer.36.1.1
Kang, Tae Young, Sanggun Lee and Park, So Jeong. "Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds" Korea Real Estate Review 36, no.1 (2026) : 7-27.doi: 10.35136/krer.36.1.1
Kang, Tae Young; Sanggun Lee; Park, So Jeong. Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds. Korea Real Estate Review, 36(1), 7-27. doi: 10.35136/krer.36.1.1
Kang, Tae Young; Sanggun Lee; Park, So Jeong. Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds. Korea Real Estate Review. 2026; 36(1) 7-27. doi: 10.35136/krer.36.1.1
Kang, Tae Young, Sanggun Lee, Park, So Jeong. Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds. 2026; 36(1), 7-27. Available from: doi:10.35136/krer.36.1.1
Kang, Tae Young, Sanggun Lee and Park, So Jeong. "Determinants of Household Real Estate Investment Decisions : Analysis Based on Surplus Funds" Korea Real Estate Review 36, no.1 (2026) : 7-27.doi: 10.35136/krer.36.1.1
