Bivariate Analysis of Tenure Choice among Homeowners in the Seoul Metropolitan AreaJong Hoon Park* Seong Woo Lee**

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The purpose of this study is to investigate determinants that affect household tenure choice for home owning renter in Seoul Metropolitan Area. With using the 2% micro data from the Korea Census of Population and Housing and applying bivariate probit model to control sample selection bias that could be incurred by sample selectivity from a chain of housing tenure choice and housing sub-tenure choice, this study finds that the middle age household group who has school age children is more likely to choose rent than other age group. High land price, financial independence rate and number of private education institute of a region are statistically significantly related to the choice of the home owning renter. However, among three area characteristics, the presence of private education institutes is the most important factor to identify home owning renter. This study concludes with some policy implications regarding the preference change of home owners who live in rent housing by diverse demographic and socio-economic, and regional characteristics.

home owning renter, owner-occupier, housing tenure choice, bivariate probit model

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