Analyzing System Dynamics of Public Rental Housing Market

Abstract

Although every year the Korean government has made a plan for housing market with extended supply to concentrate on improving welfare of the people, the housing project raised a lot of problems in its efficiency such as lack of long-term vision and consistency of the government policy. Especially, the plan of 115% of housing diffusion in 2003 is still in progress after its acquisition of 100% in 2002, and there is no change in the rental housing rate of 43% in 2003. In addition, the Korean construction firms` bankruptcy with a raise of unsold housing and a rapid increase of housing prices is worsening the circumstances of the instability of housing market and the low-income bracket. The government now considers making the strategy for revitalizing the economy and regional development by means of a million public rental housing plan for the low-income bracket and welfare. This study introduces the basic information of the subjective strategic establishment with analysis of the reciprocal action of influence factors for public rental housing by the system dynamics theory and the effect of public rental housing in housing supply market which has a long-term dynamic form.