Abstract for: Estimating the Home-Purchase Cost of Seoul Citizens
Seoul citizens are currently suffering from high housing price. Home prices have risen more rapidly than salaries so owning a housing unit (apartment, condominium, or single-family home) in Seoul is becoming more difficult than ever. Therefore, this research examines the behavior of average Seoul citizen in owning housing unit in Seoul, Korea, particularly in terms of the length of time required to afford a house unit. This research estimates that it will optimally take about 11.5 years after getting a job to own housing unit in Seoul that is currently valued at $300,000 where the optimal growth rate of housing price is 3% in cases where the growth rate of income is 2.97% and consumption prices are increasing at a rate of 2.95%.