A Study on the Determinants of Unsold Housing in Korea: Focusing on Metropolitan and Non-metropolitan Areas

This study attempted to identify, using macroscopic indicators, the determinants of unsold and constructed unsold housing across the country, in metropolitan and non-metropolitan areas. The study’s temporal range was monthly data from January 2015 to July 2024. The main results of this study, according to the above research purpose and content, are as follows. First, a rise in the home sales price index, which increases demand for real estate, leads to a rise in home sale prices and a decline in the number of unsold and post-construction unsold houses. Second, as the monthly house rent index increases, constructed unsold housing increases in both metropolitan and non-metropolitan areas. It was found that this increase in monthly rent prices negatively affects unsold housing after completion more than unsold housing. Third, post-construction unsold housing is more sensitive in the provinces than in metropolitan areas. Therefore, resolving this issue requires establishing regional-specific policies focused on the provinces and cooperating with various stakeholders, such as government, local governments, and construction companies. By analyzing the determinants of total unsold housing and unsold housing after completion, this study is expected to be used as a reference for identifying the causes for both and establishing regional customized policies to resolve unsold housing while considering local characteristics.