Effects of Objective Indicator and Subjective Perception of Housing Cost Burden on Residential Satisfaction Among Public Housing Tenants in Seoul

This study examines the effects of housing cost burden on residential satisfaction among public housing tenants in Seoul, South Korea, with particular emphasis on the distinction between objective indicators and subjective perceptions. Drawing on microdata from four waves of the Seoul Public Rental Housing Panel Survey—comprising a total of 5,180 households (1,295 per wave)—the analysis employs a panel random-effects ordered logistic regression model. The results show that various household characteristics and housing market conditions are significantly associated with residential satisfaction. Notably, while objective indicators of housing cost burden show statistically insignificant effect, subjective perceptions of cost burden substantially decrease residential satisfaction. These findings suggest that the low-rent structure of public rental housing may buffer the measurable cost burden, yet subjective experiences—shaped by individual psychological and social factors—play a critical role in shaping tenant satisfaction. Our findings underscore the need for public housing policy to move beyond the sole provision of objectively affordable units and instead incorporate strategies aimed at enhancing tenants’ subjective well-being and satisfaction with their living conditions.