The Dynamic Relationship Between Objective and Subjective Housing Affordability and Mental Health

Abstract This study explored how housing affordability is associated with mental health by focusing on the moderating role of subjective perceptions of rent burden. Drawing on data from the Korean Labor and Income Panel Study, we examined whether the association between unaffordable housing (assessed using the rent-to-income ratio) and mental health varied depending on the residents’ perceptions of housing cost burden. The findings revealed that mental health outcomes were poorer when high housing costs were accompanied by a sense of burden. These interaction patterns were especially pronounced among households in the bottom 40% of the income distribution, suggesting that affordability-related mental health risks were disproportionately experienced by lower-income groups. The results call for closer attention to subjective rent burden and its psychological consequences, as well as broader exploration of housing interventions and policies that improve residential environments to alleviate perceived housing stress.