Index on housing are focused on changes in specific housing type and price, such as housing sale price, rent price, and there has been no attempt for measuring the behavior of tenants or landlords. We tried to develop an index to measure convesion rat...
Index on housing are focused on changes in specific housing type and price, such as housing sale price, rent price, and there has been no attempt for measuring the behavior of tenants or landlords. We tried to develop an index to measure convesion rate of housing cost burden according to the increase of the rent conversion.
We use Extracted apartments data with more than two confirmed dates and analyzed for areas where rent type of housing convert from jeonse to monthly rent. The area where the conversion reate to the rent is fast are metropolitan and some metropolitan cities such as Busan and Daegu. In 2013, when RCB(Rental cost burden index), the trend is generally upward with rising by 1.3 times in 2014, 1.4 times in 2015, and 1.5times in the end of 2016. It is possible to continuously monitor the change of the additional rental cost burden due to the conversiong to monthly rent and to measure the burden level of the tenant.
Although the tenant’s burden from th conversion of monthly rent is not large (about 1.5 times), the actual burden felt by the tenant will be significant. It seems necessary to create a system that slow down the conversion rate of the monthly rent