Impact of psychological and cognitive factors caused by real estate news on Jeonse price : Focusing on Multi-family Housing in Incheon Metropolitan City

Recently, various factors such as interest rate hikes, inflation, and economic slowdowns in the real estate market have had a significant impact on the overall real estate market, including jeonse prices. In particular, real estate news and media have a substantial impact on public opinion formation and market sentiment. This study analyzed the impact of psychological cognitive factors on jeonse prices by dividing jeonse prices into rising and falling periods using real estate news from January 2019 to March 2024 for multi-family houses in Incheon Metropolitan City. The physical characteristics of the house, such as exclusive area, floor, and years of use, had a significant impact on jeonse prices. Among psychological cognitive factors, negative events such as ‘arrest’ or ‘police’ were factors that decreased jeonse prices, while ‘region’ and ‘rent’ were factors that increased jeonse prices, but the statistical significance was low. In particular, jeonse prices are sensitive to supply and demand factors in the market, and psychological cognitive factors play an important role. Therefore, it was confirmed that an approach that considers market characteristics and is consistent with news or public opinion trends is necessary to stabilize the jeonse market. Lastly, it is academically significant in that it quantifies and analyzes the influence of social and psychological factors rather than physical and economic factors, thereby emphasizing the importance of psychological cognitive factors and practically exploring the influence of actual social issues and changes in public opinion on the rental market.