Poll Links Birthrate to Housing Prices

Jongno-gu, with low housing prices but also few apartments, has a low birthrate, so the actual number of children in a family is different from housing rates.

Birthrates: Nowon-gu 1.19, Gangnam-gu 0.78—

Nowon-gu, with 1.19 children per person, had the highest total birth rate of all the gus in Seoul. Guro-gu followed second with 1.14, and Yeongdeungpo-gu was third with 1.09. The total birth rate for Seoul was 1.00.

The average selling price for one-pyeong of apartment space was second lowest in Nowon-gu at 6.7 million won (with rates as of January 2, 2006), with the lowest prices being found in Dobong-gu at 6.62 million won. The rent deposit money is also the lowest in Seoul with the average rate being 3.87 million won per pyeong, making it possible to get a 24-pyeong apartment at prices lower than 100 million won. Out of residences, the apartment rate was 86.75 percent, the highest in Seoul.

Areas with high birthrates such as Guro-gu and Yeongdeungpo-gu are areas where housing prices or rent deposits are relatively low, and apartments occupy over 50 percent of households.

In contrast, the birthrate of Gangnam-gu was 0.78, or the lowest in Seoul. It was 0.22 lower than the Seoul average, and 0.41 lower than Nowon-gu.

The percentage of apartments in Gangnam-gu is 74.7 percent, a relatively high figure. However, the average price of one-pyeong is 25.81 million won, and rent deposit money is 7.42 million won, the most expensive in Seoul. Seocho-gu, which also has a low birth rate of 0.90, has housing prices as expensive as Gangnam.

Jongno-gu, which had the second lowest birth rate with 0.83, has relatively low housing prices, but has the lowest rate of apartments at 21.20 percent.

Professor Cho explained, “A high total birth rate means that many people with the tendency of having many children live in that area. So there is a difference with how many children a family has in reality.”

According to the National Statistical Office, Korea’s birthrate is 1.16 children per person as of 2004, one of the lowest levels in the world.

Difference in Lifestyles Influences Birthrate Differences—

Viewing the results of this survey, demography and real estate issue experts concluded that, as the economic burden of acquiring housing is great in Korea, the housing problem affected birthrates.

In other words, areas where apartments are concentrated have a good rearing environment, and appropriate housing prices. Therefore, people who reside in the areas tend to have many children.

It was also concluded that the lifestyle differences caused by income levels also had an influence on the birthrate differential.

Chungnam National University Demography professor Jeon Gwang-hee explained, “One of the reasons why birthrates are low in Seoul Gangnam area is because fertile women have economic means, and with many in professional jobs, have a strong tendency to marry late or to stay single.”

Some also pointed out that considering the birthrate and housing problem relationship, in order to solve the low birthrate problem, the housing problem should be solved first.

Korea Housing Institute Research Chief Jang Sung-soo commented, “The government’s current measures against low birthrates is focused on supporting child-rearing after he or she is born. However, if the housing problem of families with many children is solved, it will see great results in increasing birthrates.”

Joong-Hyun Park sanjuck@donga.com