Assessing Policy Effects on the Interacting Housing, Chonsei, and Wolse Markets

Our study, based on a partial equilibrium model consisting of housing sales, chonsei, and wolse markets, discusses the effect of various policies on the prices in those markets. The paper confirms that the government's tax policy, monetary policy, and financial regulations not only have differential effects on the housing sales market and rent markets, but also that the directions of the effects are often ambiguous. These results also suggest that it is not easy to predict the impact of most housing market policies aimed at stabilizing housing prices on the rent markets and the housing sales market, and that unintended consequences may affect housing welfare. Therefore, future housing policies should be devised by comprehensively considering their influences on sales price, chonsei deposit, and wolse rent.