This study empirically examines the relationship between housing price fluctuations and income inequality using time series data from 2006Q1 to 2024Q4. Dynamic and quantile regression models are employed jointly to assess both the average effects of housing prices and heterogeneous effects according to the magnitude of changes in income inequality. The dynamic regression results indicate that increases in the prices of overall housing, apartments, and row and multi-family housing are associated with an increase in income inequality, with a lag of approximately two quarters. However, no statistically significant effect is found for detached houses. In the quantile regression, a pattern of declining housing price coefficients across higher quantiles is observed in all models except for detached housing, although the differences across quantiles are not statistically significant in any model. The robustness checks indicate weak evidence that housing price fluctuations precede changes in inequality and provide no support for reverse causality. These findings suggest that the transmission mechanisms differ by housing type, which reflects variations in asset market characteristics and rental structures. The results imply that housing policy discussions should consider the medium- to long-term distributional effects.
Hee Yeong Chung (Wed,) studied this question.