Homeownership structure and the heterogeneous effects of housing prices on divorce

This paper examines the relationship between housing prices and divorce using regional panel data from South Korea over the period 2006–2024. While the overall effect of housing prices on divorce is not statistically significant, the results reveal substantial heterogeneity across housing market conditions. In particular, increases in housing prices are associated with higher divorce rates, whereas declines in housing prices do not show a significant effect. The relationship also varies according to regional homeownership rates. In regions with higher homeownership, rising housing prices are positively associated with divorce rates, while the relationship is weaker or even negative in regions with lower homeownership. These findings suggest that the social consequences of housing market fluctuations may depend on the distribution of housing assets, potentially helping to explain the mixed findings reported in earlier studies.