As residential structures reach functional obsolescence, systematic renewal becomes essential for sustaining urban vitality and residents’ quality of life. In South Korea, recent fluctuations in the real estate market and policy interventions, such as relaxing floor area ratio limits, have significantly increased redevelopment demand in densely built cities such as Incheon. However, empirical research remains limited on how changing market conditions and density regulations influence project feasibility in low-growth environments. Specifically, the relationship between housing price thresholds and policy effectiveness remains insufficiently examined in aging industrial cities. This study investigates the structural challenges of housing renewal in Incheon by developing a streamlined analytical model. Central to the analysis is the project profitability ratio, comparing net gains with pre-existing asset values of cooperative members. A ratio exceeding 100% serves as a primary incentive for resident participation, reducing the individual financial contributions required from members. Using empirical transaction data, the study identifies a density-price paradox: in low-price areas, higher-density development fails to substantially improve this ratio because of escalating construction costs. Findings suggest public policy should move beyond supporting individual projects to prioritize long-term spatial restructuring and infrastructure expansion. Such an approach is necessary to establish a sustainable foundation for urban regeneration.
Min et al. (Sat,) studied this question.