Genetic Algorithm-based Optimal Investment Scheduling for Public Rental Housing Projects in South Korea

Abstract

Declining birthrate is a serious problem that threatens the sustainability of Korean society. The main cause of this phenomenon is high living cost where housing cost accounts for the majority in household expenditure. South Korea has a very low supply rate in public rental housing when compared to other OECD countries. Because young people cannot afford to buy or lease a house for their new houses, some of them postpone or even give up marriage. As a countermeasure, Gyeonggi Province (surrounding area of Seoul) recently announced the supplying plan of 10,000 public rental houses by 2020. We expect this measure to alleviate the low birthrate problem and increase the demographic sustainability of the province. This study optimizes multi-annual investment scheduling for rental housing projects using genetic algorithm while satisfying the constraints such as budget, human resources, regional balance, etc. Through the optimal investment scheduling, we hope that public corporation will supply public rental houses more efficiently and more sustainably for the community.