Homeownership, Income and Social Trust: Exploring Dynamics Between Homeownership, Income, and Individuals’ Perceptions of Autonomy and Social Trust in South Korea

Abstract

In recent years, scholarly attention to the relationship between housing wealth and its broader social and political implications has intensified, particularly in response to growing wealth disparities in advanced capitalist societies since the 1980s. These disparities have been further exacerbated by shifts in labor market conditions and welfare reforms that have increased income and employment instability. This study investigates the interplay between homeownership, income, and social trust in South Korea, employing path analysis to explore both the direct and indirect effects of homeownership on social trust, with perceived autonomy serving as a mediating factor. Furthermore, the analysis examines how homeownership and income jointly influence autonomy and social trust, with a specific focus on the moderating role of income. The findings reveal a positive association between homeownership, autonomy, and social trust, with homeowners generally exhibiting higher levels of both compared to non-homeowners. However, as income rises, these differences diminish, underscoring the moderating effect of income. These results highlight the pivotal role of homeownership, particularly for individuals facing heightened income insecurity. In contexts such as South Korea, where real estate constitutes a substantial share of assets, disparities in homeownership are pronounced, and welfare systems providing income-based support are limited, the study emphasizes how homeownership critically shapes social perceptions.