Effects of Cash and In-Kind Housing Assistance on Asset Accumulation in Low-Income Households

This study aims to identify and compare the causal effects of Korea’s main housing support programs on asset accumulation among low-income households, specifically contrasting public rental housing (in-kind support) and housing allowance (cash support). The novelty of this research lies in the use of nationally representative data from the 2016–2021 Housing Condition Survey and rigorous statistical techniques—including propensity score matching and regression analysis—to assess asset-building outcomes by support type, a rarely studied topic in the Korean context. Analysis reveals that recipients of public rental housing experienced significantly greater asset growth than those residing in private rental accommodations, while participation in permanent rental housing was negatively associated with asset accumulation. Housing allowance programs did not show a significant effect on asset growth, implying that beneficiaries may prioritize immediate consumption needs over savings. Residential stability, measured by tenure duration, emerged as a key determinant of asset accumulation. These findings underscore the importance of policy differentiation: public rental housing can facilitate upward mobility among low-income households, whereas permanent rental housing programs may require supplementary income stabilization measures. An integrated approach that combines housing and labor market policies is warranted to enhance asset-building opportunities and address persistent inequalities in housing welfare. Data limitations include a focus on households newly receiving benefits between 2016 and 2021 and incomplete coverage of asset formation variables, indicating a need for future studies with broader datasets and variables.