Small housing has gained prominence in the housing market due to substantial shifts of both population and household structures in Korea. The study aims to examine the spatial clustering pattern of urban residential houses (URHs) in terms of the spatial statistics, and analyze the impacts of both locational and neighborhood residential factors on the formation of the spatial clustering pattern in the Seoul metropolitan area. It is found that the URHs represent a significant spatial clustering pattern based on the census tracts. The hotspots are mostly found in the outskirts of Seoul, where the development of small houses has been concentrated for ten years. Also, both locational and neighborhood residential factors have significant effects on the hotspot formation of the URH. The hotspots are more likely to be found in areas having many available sites for development, high demand for habitation, and high expected profits from developing small residences. Another significant factor is access to public transit, amenities, and employment centers. Therefore, it is necessary to design a rent subsidy program for potential residents and to encourage the development of housing in nearby hotspots with relatively lower land values. It is also important to establish policies and strategies for planning the housing supply and managing the residential environment in low-rise residential areas.

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