Did the COVID-19 pandemic have an equitable impact on rent affordability? A longitudinal analysis in Seoul, South Korea

This study examines quarterly changes in rent affordability during different phases of the pandemic, categorized by the extent of the spread of the virus and social distancing policies with different degrees of restrictiveness. This study focuses on the heterogeneous effects of the pandemic phases on rental affordability, depending on the neighborhood's composition of employment type and income level, based on the expectation that the pandemic and social distancing have unevenly limited economic activities. By analyzing uniquely constructed panel data from 413 neighborhoods in Seoul from 2018 to 2022, we estimate a series of fixed-effect models that explain rental affordability. The results indicate that the different pandemic phases significantly increased rent burdens and such effects vary in magnitude, depending on the neighborhoods' income levels. Specifically, social distancing had a more adverse impact on rent affordability in neighborhoods with a lower proportion of large corporate workers. This study highlights the importance of considering detailed household income characteristics to better understand vulnerabilities in rental markets.