Study published in Journal of the Korea Real Estate Academy, No. 81

Research examines link between housing costs and willingness to have children

Parental financial support found to boost intent for second child and beyond

A newlywed couple weighing the decision to have a second child amid concerns over loan repayments. [Image generated by ChatGPT]
A newlywed couple weighing the decision to have a second child amid concerns over loan repayments. [Image generated by ChatGPT]

A new academic study has upended the common assumption that newlyweds who own their home are more likely to have children. For second and subsequent births in particular, the research found that the greater the financial support from parents, the higher the couple's willingness to have another child.

According to academic circles, the 81st issue of the Journal of the Korea Real Estate Academy published a paper titled "The Effect of Housing Cost Financing Methods on Newlyweds' Childbearing Intentions — Focusing on a Comparison by Presence of Children," authored by Oh So-jeong, a master's student, Lim Ji-hyeon, a doctoral student, and Professor Ma Gang-rae, all from the Department of Urban Planning and Real Estate at Chung-Ang University.

The research team drew on raw data from the 2024 Housing Survey of general households, analyzing data from 3,436 households married within seven years. To examine the relationship between childbearing intentions and housing costs — including home purchase prices and rental expenses — the study focused on newlywed couples married within seven years for whom housing cost financing information was available.

Among childless households (1,536 households), the ratio of housing-related loans and the ratio of parental financial support showed no statistically significant correlation with the intention to have a first child. However, the household's life-cycle stage, financial capacity and housing conditions suitable for child-rearing were found to have an effect.

"Having a first child is a relatively universal part of family formation, and no clear link emerged with how housing costs were financed," the researchers said. "However, households with higher earned and business income, higher total housing costs, and those living in apartments showed greater willingness to have children."

Among households with children (1,900 households), a higher share of parental financial support in total housing costs was associated with a greater intention to have an additional child — a second or more.

The odds ratio for the parental support share was 1.009. The researchers interpreted this to mean that, all else being equal, a 10-percentage-point increase in the share of parental support — in place of the couple's own funds — raises the likelihood of intending to have an additional child by about 9.4 percent.

"Non-repayable support from family, and the resulting reduction in the depletion of a couple's own funds, increases disposable resources and child-rearing capacity, which showed a positive association with the intention to have additional children," the researchers said.

The study also found that self-employed households and newlywed couples owning multiple properties showed higher childbearing intentions. The researchers added that for self-employed households, the flexibility to adjust working hours helps with balancing child-rearing, while for couples with multiple properties, the financial cushion from additional real estate assets provides a foundation for having more children.

The researchers interpreted the findings to mean that the burden of repayment — rather than simply whether a loan exists — is most closely tied to childbearing decisions. For additional births, unconditional family support with no repayment obligation underpins child-rearing capacity, they said. While homeownership provides a stable living environment, the funds required to purchase a home and service the debt can constrain a couple's ability to raise children, they added.

"Rather than making it easier to rely on parental support, there is a need to consider expanding public support so that anyone can secure the capacity to raise children, regardless of family background," the researchers said. "Options such as low-interest loans and repayment relief tied to the number of children could be considered."


hope@heraldcorp.com