Regional Polarization of Housing Price: Influence of Economic Crises and Housing Policies

This study quantitatively analyzes the impact of economic crises and multi-homeowner regulation policies on regional polarization in housing prices. Economic crises were categorized into the IMF financial crisis, the global financial crisis, and the COVID-19 crisis, examining their distinct impacts on the housing market. During the IMF crisis, overall housing price volatility decreased, but Seoul's volatility remained high, intensifying regional polarization. In contrast, the global financial crisis and COVID-19 crisis saw liquidity expansion policies leading to higher housing price volatility in regional cities than in Seoul, which mitigated polarization but increased overall volatility. Multi-homeowner regulation policies amplified price volatility, especially in Seoul, where the “one valuable property” phenomenon intensified, leading to heightened centralization. Using DID(Difference-in-Differences) analysis, this study empirically identified the differential impacts of economic crises and housing policies on structural changes in the housing market and regional polarization. The findings provide valuable insights for effective policy formulation and balanced regional development amidst economic crises.