We quantitatively evaluate the relative contribution of macroeconomic fundamentals and housing-related policies to the changes in real house prices, rent, and household welfare in Korea. We show that the observed changes in real house prices and rent in 2001–2016 are mainly attributed to a decrease in the real interest rate, an increase in real income, and an increase in the aggregate housing supply. However, housing-related policies turn out to have little impact on the price changes, contrary to the common belief that such policies significantly affected the housing market over this period. We also find that the welfare implications of fundamentals and housing-related policies vary by household income.