Linking Life Satisfaction to Settlement Intention: The Moderating Role of Urban Regeneration Budget Execution in South Korea

Abstract

This study investigates urban life satisfaction and residents’ settlement intention as emergent outcomes of interconnected urban systems and examines the moderating role of urban regeneration budget execution as a systemic policy input. Drawing on the bottom-up spillover perspective and policy feedback theory, this study posits that satisfaction with core aspects of urban living—such as housing, transportation, and public safety—reflects the functioning of multiple interrelated urban subsystems, which accumulate into a global sense of well-being that influences settlement intention. Furthermore, when urban regeneration budgets are visibly and fully executed, they operate as institutional feedback mechanisms, leading residents to attribute their life satisfaction to effective system performance and reinforcing their desire to stay. Using survey data from Incheon Metropolitan City and Gyeonggi Province in South Korea, the study employs stereotype logistic regression to test the proposed model. The findings reveal that urban life satisfaction significantly predicts stronger settlement intention, and this effect is amplified in municipalities with higher levels of budget execution. These results contribute to theoretical understanding by linking subjective well-being with institutional performance and offer practical guidance for South Korean local governments seeking to strengthen community resilience through transparent and outcome-driven urban policy delivery.

1. Introduction

South Korea is experiencing significant demographic changes, including an aging population, declining fertility rates, and the concentration of resources in a few metropolitan centers [1,2]. These trends have placed considerable systemic pressure on the functionality and adaptability of local urban systems [3,4]. In particular, rural towns, provincial cities, and aging inner-city neighborhoods have faced youth out-migration and population decline, eroding essential community functions [5]. This deterioration affects not only population size but also key urban subsystems—such as education, healthcare, social services, and infrastructure—whose interdependence determines the overall performance of the urban system [6]. Consequently, understanding residents’ intentions to remain in their communities—referred to as settlement intention—has become a critical focus of research and policy. Beyond merely indicating a preference to stay, settlement intention reflects residents’ psychological attachment to their community, their active civic participation, and a forward-looking commitment to its well-being [7]. Such strong settlement intentions are vital for sustaining community stability and enhancing local resilience amid ongoing demographic and social challenges.

While previous studies have examined various factors influencing settlement intention, such as demographic attributes, economic conditions, and housing quality, recent research emphasizes residents’ subjective evaluations of urban systems, particularly urban life satisfaction [8,9]. As a comprehensive cognitive indicator, life satisfaction captures individuals’ perceptions of multiple dimensions of urban living, including housing, transportation, safety, public services, and social relationships [10,11]. Drawing on the bottom-up spillover perspective, this study views life satisfaction as an aggregated evaluation of specific domains of everyday experience, where satisfaction in distinct areas spills upward to shape overall life assessments [12,13,14]. This perception influences behavioral responses, such as the intention to remain in a locality, positioning settlement intention as both a personal choice and an indicator of urban system viability.

However, the influence of life satisfaction on settlement intention is not uniform across all settings [8,15]. Empirical research indicates that the strength of this relationship depends significantly on contextual factors, particularly the visibility and credibility of public policy implementation [16]. According to policy feedback theory, public policies act as system-level interventions that produce material outcomes and shape perceptions of institutional performance through feedback loops [17,18]. In this study, urban regeneration budget expenditure is viewed as both a tangible investment and a symbolic signal; when funds are fully utilized and projects visibly completed, public trust in local governance increases, thereby strengthening the perceived link between life satisfaction and the intention to remain [19].

Based on these theoretical foundations, this study addresses two research questions: (1) Does urban life satisfaction significantly influence residents’ intention to remain in their current locality? and (2) Does urban regeneration budget execution moderate this relationship by enhancing perceptions of policy effectiveness? To explore these questions, we analyzed large-scale social survey data from 2023, collected from residents in Gyeonggi Province and Incheon Metropolitan City, along with administrative records on urban regeneration budget execution. Given the ordinal nature of the dependent variable, we employed stereotype logistic regression analysis. This empirical design allows for us to examine how subjective life evaluations interact with observable policy outputs to influence settlement intentions, providing a basis for both theoretical development and practical policy guidance.

This study makes several contributions. Theoretically, it reframes urban life satisfaction and settlement intention as emergent properties within a dynamic urban system, influenced by interactions among subsystems and institutional feedback loops. By incorporating policy feedback theory, it introduces a governance-sensitive model in which policy outputs serve as cognitive filters that shape behavioral responses. From a policy perspective, the findings emphasize the critical importance of policy visibility and execution in building resident trust and fostering spatial commitment. Ultimately, this study provides system-level insights into how subjective well-being and governance environments jointly influence long-term settlement behavior, offering actionable guidance for sustainable urban development and community resilience planning.

2. Theoretical Background and Hypotheses

2.1. Urban Life Satisfaction and Settlement Intention

Settlement intention refers to an individual’s deliberate and future-oriented willingness to remain in their current community [20,21]. It reflects more than mere contentment with local conditions; it signifies a deeper psychological bond with a place. Unlike retrospective metrics such as migration rates or population turnover, settlement intention captures latent behavioral tendencies, offering early signals of community stability and resilience. It encompasses place attachment as a multidimensional construct in which perceived quality of life reflects a positive appraisal of local living conditions that strengthens bonds to place [22], institutional trust fosters a sense of security and reciprocity that supports community commitment [23], and alignment between personal aspirations and local opportunities enhances person–place fit, reinforcing the intention to remain [24]. Individuals with a strong attachment to place are more likely to participate in civic activities and support community-based initiatives, thereby reinforcing both social capital and institutional trust [25,26]. As such, settlement intention serves as a strategic variable for local governments seeking to counter demographic decline and enhance the stability and resilience of local urban systems over time.

Urban life satisfaction has emerged as a key explanatory variable for understanding why people choose to stay in or leave a locality. It is defined as a person’s overall cognitive assessment of life quality within an urban context, integrating subjective evaluations of critical domains such as housing, transportation, safety, environmental amenities, access to public services, and social relationships [10,27]. Unlike temporary emotional states, urban life satisfaction is relatively stable and shaped by how individuals interpret objective conditions through the lens of their personal values and expectations [25,27]. Due to its integrative and subjective nature, urban life satisfaction serves as a strong predictor of spatial behavior, including the decision to remain in or exit a community. For local policymakers, this makes improving residents’ perceived quality of urban life both a normative goal and a strategic tool for fostering population retention [26].

Crucially, the subjective nature of urban life satisfaction serves as a meaningful behavioral signal. Residents in the same neighborhood may experience varying levels of satisfaction due to differing personal standards, life experiences, or coping strategies [25,28]. These differences are systematic rather than random, reflecting how individuals internalize and evaluate their urban environments. Studies across diverse regions have demonstrated that people with higher subjective well-being are less likely to express intentions to relocate [29,30]. Moreover, urban life satisfaction is linked to greater levels of civic engagement and social connectedness—factors that, in turn, reinforce intentions to settle and commitment to a place [31].

Bottom-up spillover theory provides a compelling framework for understanding the connection between urban life satisfaction and settlement intention. The theory suggests that overall life satisfaction is derived from the accumulation of satisfaction in specific life domains [27,32]. In an urban context, individuals evaluate distinct elements—such as neighborhood safety, transit convenience, housing quality, and community cohesion—and these individual assessments “spill upward” to influence their overall sense of life satisfaction [33]. This aggregate satisfaction can, in turn, affect higher-order behavioral intentions, including the decision to remain in a community. When satisfaction is consistently high across these key urban domains, residents are more likely to view their city or town as a place worth investing in emotionally and socially. Conversely, dissatisfaction in even a few domains can disrupt this upward cognitive integration, undermining both life satisfaction and settlement intention.

This framework clarifies how urban life satisfaction directly influences settlement intentions. According to bottom-up spillover theory, individuals first evaluate specific aspects of their urban environment—such as housing quality, transportation accessibility, neighborhood safety, and availability of public services [34,35]. These assessments are not isolated; rather, they are cognitively integrated into a broader judgment about overall life satisfaction. When these evaluations are consistently positive, they reinforce a sense of congruence between personal expectations and the lived urban experience. This congruence fosters emotional stability, place-based confidence, and a forward-looking orientation toward one’s current community as an integrated socio-spatial system [36]. Consequently, individuals who are highly satisfied with their urban life are more likely to develop a clear and affirmative intention to remain in their locality. Thus, urban life satisfaction functions not only as an outcome of environmental conditions but also as a cognitive anchor for future spatial decisions.

A growing body of empirical research supports the proposition that urban life satisfaction significantly influences individuals’ settlement intentions. For instance, Schiele [37] uses nationally representative panel data from Germany to demonstrate that migrants with higher overall life satisfaction are more likely to remain in their host communities, suggesting that subjective well-being serves as a cognitive proxy for fulfilled expectations. Similarly, Zhou et al. [38] analyze survey data from urban residents in major Chinese cities and find that satisfaction with specific domains, such as transportation, housing, and environmental quality, significantly predicts residents’ willingness to stay, especially when these domains align with their individual priorities and urban aspirations. Lim et al. [39], focusing on foreign residents in Toshima City, Tokyo, reveals that residential satisfaction—shaped by factors such as housing quality, neighborhood inclusiveness, and access to services—plays a decisive role in enhancing settlement intentions. Together, these studies reinforce the theoretical view that satisfaction in discrete aspects of urban life accumulates into a comprehensive judgment—urban life satisfaction—which, in turn, directly influences individuals’ behavioral intentions to remain in their communities.

These findings support the idea that urban life satisfaction is a key cognitive mechanism through which individuals assess the desirability of their residential environments and make corresponding behavioral decisions [26]. In various national contexts and populations—ranging from internal migrants in Germany to urban residents in China and foreign nationals in Japan—higher levels of satisfaction with urban living conditions consistently correlate with stronger intentions to remain in place. This convergence indicates that urban life satisfaction serves not only as a psychological reflection of well-being but also as a predictive signal of spatial commitment. However, much of the existing evidence has been derived from international contexts, while empirical research focusing on South Korea—particularly in the major urbanized regions of Incheon Metropolitan City and Gyeonggi Province—remains limited. Additionally, comprehensive, population-based survey data that capture both residents’ subjective evaluations of urban life and their settlement intentions have been relatively rare in prior research within the South Korean context. To address this gap, the present study examines the relationship between urban life satisfaction and settlement intention in these two regions, providing context-specific insights that contribute to the broader literature on urban well-being and population retention. Therefore, the following hypothesis is proposed:

Hypothesis 1:

Urban life satisfaction is positively associated with residents’ intention to remain in their current locality.

2.2. Moderating Role of Urban Regeneration Execution

Although urban life satisfaction is a well-established predictor of settlement intention, recent studies indicate that this relationship is not consistent across all contexts; rather, it depends on local conditions, governance performance, and policy outcomes [8,16,30]. A key factor in this variability is how residents interpret the source of their satisfaction. When individuals view their urban life satisfaction as resulting from improvements in the local environment—such as public services, infrastructure, or neighborhood quality—they are more likely to convert that satisfaction into a firm intention to stay [36,37]. This connection is particularly strong in communities where public investments are visible, credible, and effectively delivered. Conversely, in areas where local governance is perceived as weak or unresponsive, even satisfied residents may hesitate to commit to remaining, driven by concerns over future decline or unmet expectations [40,41]. These insights underscore the importance of moderating conditions that influence how urban life satisfaction translates into behavioral outcomes, with the implementation of public investments emerging as a critical moderator.

Among the potential moderators, the implementation level of urban regeneration projects—measured by the execution of urban regeneration budgets—is particularly significant. It serves as both a structural input into the urban system and a visible output of institutional performance. This variable assesses the extent to which allocated funds have been utilized to achieve tangible improvements in the local environment. As a concrete indicator of implementation fidelity, budget expenditure reflects not only administrative capacity and efficiency but also conveys a symbolic message that governmental commitments have been fulfilled [42,43]. Increased expenditure enhances the visibility and perceived legitimacy of regeneration efforts, making it more likely that residents will attribute their satisfaction with urban life to these public investments [44,45,46]. This attribution reinforces the psychological connection between environmental quality and place commitment, ultimately strengthening settlement intentions. Conversely, low levels of expenditure may weaken this link, leading to a disconnect between life satisfaction and behavioral commitment, even when urban conditions are positively evaluated.

Urban regeneration is an integrated policy initiative aimed at revitalizing economically and socially declining urban areas through infrastructure renewal, community development, and spatial enhancement [47,48]. Unlike traditional redevelopment, which often focuses solely on physical infrastructure, urban regeneration pursues a broader range of objectives, including social inclusion, economic resilience, and cultural preservation. In South Korea, the Urban Regeneration New Deal (URND) program, launched in 2017, serves as the country’s flagship initiative to address urban decay, demographic decline, and spatial inequality in aging city centers and deteriorating neighborhoods [49]. This program signifies a strategic shift from large-scale demolition and reconstruction to more inclusive and sustainable urban renewal. URND channels targeted investments into various project types, ranging from small-scale residential upgrades to large-scale economic infrastructure interventions. Projects are classified into several categories—economy-based, resident-led, and general neighborhood revitalization—each designed to address the specific needs and capacities of local communities [50]. Typically, URND initiatives combine physical improvements, such as housing repairs and streetscape redesigns, with economic revitalization efforts like local business support and job creation, as well as social programs that include community engagement and cultural activities [3]. Administered jointly by central and local governments, the program aims to promote balanced regional development and foster resilient, livable communities by enhancing the quality of urban life for current and future residents.

To theoretically frame the moderating role of urban regeneration budget expenditure in the relationship between urban life satisfaction and settlement intention, this study integrates bottom-up spillover theory [27] with insights from policy feedback theory [51,52]. The bottom-up spillover perspective posits that satisfaction with specific life domains—such as housing, mobility, safety, and community engagement—accumulates to form an overall judgment of urban life satisfaction, which, in turn, shapes behavioral intentions, including the desire to remain in one’s community [33]. Policy feedback theory adds an institutional dimension to this process by highlighting how policy implementation influences public cognition and behavioral responses [52]. This theory suggests that public policies are not merely the end products of political processes; they also serve as formative social forces that shape citizens’ perceptions, identities, and preferences over time. When policy implementation is visible, successful, and aligned with resident needs, it creates a positive feedback loop that enhances perceived policy efficacy, deepens trust in institutions, and fosters a sense of governmental legitimacy [53,54].

In this context, the execution of urban regeneration budgets serves as a cognitive filter that shapes how individuals interpret the source and durability of their urban life satisfaction. While residents may feel satisfied with their local environment, this sentiment remains abstract unless tied to a clear institutional attribution. Successful regeneration projects—characterized by high budget execution and visible local outcomes—provide residents with concrete cues that connect improved living conditions to effective governance. This connection activates a cognitive process whereby subjective well-being is viewed not as a byproduct of personal circumstances, but as a direct result of intentional public investment. Consequently, residents develop a more stable, policy-oriented understanding of their life satisfaction, which enhances their intention to remain in the area. Conversely, when budget execution is low and regeneration outcomes are unclear, residents may struggle to establish this attribution, undermining both their trust in public institutions and their motivation to commit to the locality.

Empirical evidence highlights the diverse impacts of urban regeneration on residents’ well-being and community dynamics. Urtaran-Laresgoiti, Novoa, and Pérez [55] found that in Barcelona’s La Verneda i La Pau neighborhood, initiatives like community leisure programs and public space improvements were generally perceived as health-enhancing. However, construction noise had negative effects, with perceptions varying by age and gender. In Ulsan, South Korea, Cho, Kim, and Lee [56] reported that announcing urban regeneration plans significantly increased residential property values—often even before the final plan was released—in areas with high resident participation, emphasizing the need for early safeguards against displacement. Mohan, Longo, and Kee [57] demonstrated that Northern Ireland’s Neighbourhood Renewal program reduced fuel poverty, particularly among vulnerable groups. Collectively, these studies suggest that urban regeneration can yield health, economic, and social benefits, influenced by local context, implementation quality, and equitable distribution of benefits.

Despite the documented benefits of urban regeneration, prior empirical research has rarely examined how the execution of regeneration budgets influences the relationship between residents’ life satisfaction and their intention to settle. Existing studies have typically focused on specific health, economic, or social outcomes of regeneration programs, often treating implementation levels as contextual background rather than a core explanatory factor. As a result, little is known about whether and to what extent the visible and timely use of allocated regeneration funds enhances the connection between subjective well-being and long-term residential commitment. Addressing this gap is crucial for understanding not only the direct impacts of regeneration but also the mechanisms through which the quality of policy execution shapes residents’ behavioral responses.

Hypothesis 2:

The settlement level of urban regeneration budgets will moderate the relationship between residents’ urban life satisfaction and their settlement intention, such that the positive association is stronger when budget execution is high.

3. Methodology

3.1. Analytical Framework of This Study

This study aims to empirically analyze the effect of urban life satisfaction on settlement intention while examining the moderating role of urban regeneration budget execution in this relationship. The analytical model is constructed with urban life satisfaction as the independent variable, settlement intention as the dependent variable, and urban regeneration budget execution as the moderating variable. This study integrates two theoretical frameworks: the bottom-up spillover perspective and policy feedback theory.

The bottom-up spillover perspective explains that satisfaction in specific urban domains—such as housing, safety, public services, and neighborhood cohesion—accumulates into an overarching sense of life satisfaction. This overall satisfaction informs behavioral intentions, including the decision to remain in a particular community. Policy feedback theory complements this by positing that public policies influence individual attitudes and behaviors not only through material outcomes but also through cognitive reinterpretation. When regeneration projects are visibly completed and budgets are fully executed, residents are more likely to attribute improvements in their life satisfaction to government performance. This attribution strengthens the motivational force of satisfaction in shaping settlement intention.

Within this framework, high levels of budget execution enhance the credibility and visibility of urban policy, acting as a cognitive cue that reinforces the connection between subjective well-being and place-based behavioral commitment. Conversely, when budget execution is low or its results are ambiguous, the attribution process weakens, diminishing the positive influence of urban life satisfaction on settlement intention. To ensure analytical rigor, the model includes control variables such as gender, age, education level, and marital status; dummy variables distinguishing between basic and metropolitan local governments; and the log-transformed population size. The full structure of the research model is illustrated in Figure 1.

3.2. Sampling and Data Collection

This study draws on data from the 2023 Incheon Metropolitan City Social Survey and the 2023 Gyeonggi Province Social Survey, both of which provide comprehensive insights into residents’ perceptions of their living conditions and everyday life experiences. These two regions—Gyeonggi Province and Incheon Metropolitan City—are among the most populous and economically significant areas in South Korea, collectively forming part of the Seoul Capital Area, which is home to over half of the nation’s population and serves as the core of its political, economic, and administrative systems.

Gyeonggi Province, the largest provincial jurisdiction in South Korea with a population exceeding 13 million, geographically encircles both Seoul and Incheon. It consists of 28 cities (si) and 3 counties (gun), presenting a diverse mix of urban, suburban, and rural landscapes. The province features rapidly growing satellite cities influenced by metropolitan spillover, alongside economically underdeveloped residential areas. This diversity reflects a broad spectrum of socioeconomic conditions, ranging from significant industrial centers to agricultural communities.

Incheon Metropolitan City, situated on South Korea’s western coast, has a population of approximately 3 million and serves as a critical gateway for international trade and transportation. The city is administratively divided into 8 districts (gu) and 2 counties (gun), encompassing both advanced development zones—such as the Songdo International Business District—and aging inner-city neighborhoods. In recent years, Incheon has actively pursued urban regeneration policies aimed at addressing structural decline, revitalizing local economies, and enhancing overall livability.

In South Korea’s two-tier local governance system, metropolitan cities (such as Incheon) and provinces (such as Gyeonggi) operate as upper-level local governments, while cities (si), counties (gun), and districts (gu) function as basic-level local governments within their respective jurisdictions. These basic local governments are directly responsible for public service delivery, land use planning, and local development initiatives, positioning them as highly relevant units of analysis in urban policy and community outcomes research. Given their demographic significance, administrative complexity, and policy relevance, these two jurisdictions provide fertile ground for investigating how residents perceive and respond to local governance, infrastructure conditions, and quality of life. To conduct a consistent and comparable analysis, this study selected only identical or conceptually equivalent items from the two surveys. This harmonized approach ensured measurement validity and cross-regional comparability, forming a coherent dataset suitable for empirical analysis.

The 2023 Incheon Social Survey was conducted from 1 August to 18 September, 2023, with a reference date of 1 August. A total of 17,252 individuals aged 13 or older from 9000 households were surveyed using a stratified two-stage cluster sampling method. While face-to-face interviews served as the primary mode of data collection, self-administered and online questionnaires were also utilized to ensure inclusivity. The questionnaire consisted of 172 items spanning 11 domains, including housing, transport, culture, economy, education, health, social integration, and the environment. Of these, 110 were administrative indicators and 62 were survey items.

The 2023 Gyeonggi Province Social Survey was conducted from 1–15 September 2023. A two-stage stratified cluster sampling method was employed to select 31,740 households from a population of approximately 5.27 million. Respondents aged 15 or older participated through face-to-face interviews, supplemented by online responses. The survey covered six major areas—welfare, housing and transport, culture and leisure, education, income and consumption, and employment—across a total of 42 items.

In addition to these two survey datasets, this study incorporated hard data on urban regeneration expenditures. Specifically, the 2023 settlement amounts for urban regeneration projects were collected from all 31 municipal governments in Gyeonggi Province and the 10 district governments in Incheon. These financial records were obtained through official public information requests submitted between 2 May and 30 May, 2024 via the Korean Government’s Information Disclosure Portal (www.open.go.kr), a centralized platform that enables citizens to request and access administrative data from public institutions.

By integrating these two survey datasets with objectively verified budgetary data, this study constructs a robust empirical foundation for analyzing how residents experience, evaluate, and respond to their local environments within the broader context of urban governance and regional sustainability.

Table 1. Demographic characteristics of survey respondents in the 2023 Incheon and Gyeonggi Province social surveys.

Category	Subcategory	Incheon Social Survey		Gyeonggi Social Survey
		Number	(%)	Number	(%)
Gender	Male	8006	46.41	30,095	48.34
	Female	9246	53.59	32,162	51.66
Age	15–19	516	3.03	2682	4.31
	20–29	1376	8.07	6279	10.09
	30–39	2320	13.61	8436	13.55
	40–49	2810	16.48	11,123	17.87
	50–59	3630	21.29	11,769	18.91
	60–69	3716	21.80	11,698	18.79
	70 and above	2680	15.72	10,247	16.46
Education	High school or below	10,403	60.30	35,868	57.61
	Undergraduate	6702	38.85	23,664	38.01
	Graduate school or above	147	0.85	2725	4.38
Marital status	Married	6259	36.28	22,419	36.72
	Unmarried	10,933	63.72	38,775	63.28

presents the demographic characteristics of respondents from the 2023 Incheon and Gyeonggi Province social surveys.

3.3. Measures

3.3.1. Dependent Variable: Settlement Intention

Settlement intention refers to an individual’s psychological willingness and behavioral tendency to continue residing in their current community over the long term [20,21]. As such, it is widely recognized as a key indicator for assessing community stability and sustainability. In this study, settlement intention is designated as the dependent variable, measured through a question included in both the 2023 Incheon and Gyeonggi Province social surveys: “Would you like to continue living in your current city or county 10 years from now?” Responses were recorded on a 5-point Likert scale, ranging from 1 (“Strongly disagree”) to 5 (“Strongly agree”), and treated as an ordinal variable for analysis.

3.3.2. Independent Variable: Urban Life Satisfaction

Urban life satisfaction represents an individual’s overall subjective evaluation of various conditions in their daily life and is closely tied to the concept of quality of life [10]. In the context of a local community, life satisfaction reflects residents’ general perceptions and emotional responses to their living environment. In this study, life satisfaction is used as the independent variable, measured through a question common to both regional surveys: “How satisfied are you with your overall life in your current city or county?” Although originally measured on an 11-point scale from 0 (“Not at all satisfied”) to 10 (“Very satisfied”), responses were recoded into five ordinal categories to address response distribution and improve interpretability: scores of 0 to 2 were classified as “Not at all satisfied,” 3 to 4 as “Dissatisfied,” 5 as “Neutral,” 6 to 7 as “Satisfied,” and 8 to 10 as “Very satisfied.”

3.3.3. Moderating Variable: Per Capita Urban Regeneration Budget Execution

Urban regeneration budget execution reflects the actual amount of funds executed for urban regeneration projects in a given area, providing a performance-based financial indicator. Unlike budget allocation figures, this measure focuses on the real disbursement of funds, thereby serving as an objective proxy for the extent to which urban regeneration initiatives have contributed to improvements in physical infrastructure and quality of life. It is also considered a key factor influencing residents’ trust in policy and their perceived benefits.

In this study, per capita urban regeneration budget execution is measured using budget expenditure data, calculated by dividing the total disbursed urban regeneration budget by the population of each basic local government unit (city, county, or district) within Incheon Metropolitan City and Gyeonggi Province.

To ensure comparability across regions and reduce scale discrepancies, the per capita budget figures were normalized using the min-max normalization method, based on the following formula:

$$x_i^{\prime }={\displaystyle \frac{x_i-\min \left(x\right)}{\max \left(x\right)-\min \left(x\right)}}$$

where $x_i^{\prime }$ represents the normalized value for region i, and $\max \left(x\right)$ and $\mathrm{m}\mathrm{i}\mathrm{n}\left(x\right)$ denote the maximum and minimum observed values of the variable, respectively.

3.3.4. Control Variables: Sociodemographic Characteristics

To ensure a clearer understanding of the relationship between life satisfaction and settlement intention, as well as the moderating effect of urban regeneration budget execution, this study incorporates a range of sociodemographic characteristics as control variables. The analysis controls for gender, age, educational attainment, marital status, metropolitan region, and population size. Gender is categorized as male or female (female = 1), while age is grouped into seven brackets: 15–19, 20–29, 30–39, 40–49, 50–59, 60–69, and 70 or older. Educational attainment is classified into three levels based on the respondent’s highest degree: high school or below, college or below, and graduate school or above. Marital status is treated as a binary variable distinguishing between married and unmarried individuals. Additionally, metropolitan governments (Incheon metropolitan city = 1) are included as dummy variables to account for regional administrative differences. Lastly, population size is incorporated using the natural logarithm of the total population to adjust for scale disparities. These control variables are included to account for individual- and region-level heterogeneity that may influence the main variables of interest.

3.4. Analytical Method

The dependent variable in this study is measured on a five-point ordinal scale, making conventional linear regression inappropriate. As a primary approach, this study employed ordinal logistic regression, which is well-suited for analyzing ordinal data. This model assumes a parallel regression structure, meaning that the effect of each independent variable is consistent across all thresholds of the dependent variable. To test this assumption, a likelihood ratio test was conducted using the omodel package in STATA 17. The test yielded a chi-squared statistic of 2691.57, leading to the rejection of the null hypothesis at the 0.01 significance level. This result indicates that the parallel regression assumption does not hold, suggesting that ordinal logistic regression may not be an appropriate analytical tool in this context.

As an alternative, this study adopted stereotype logistic regression, a method introduced by Anderson (1984). This model retains the ordinal structure of the dependent variable while allowing for greater flexibility in estimating category-specific regression coefficients. Unlike traditional ordinal models, stereotype logistic regression relaxes the rigid parallel regression assumption and integrates the ordinal information directly into the model without reducing it to a nominal format. This approach prevents the loss of valuable ordering information and permits the estimation of proportional odds ratios that reflect the relative distances between outcome categories.

Given these advantages, stereotype logistic regression is particularly suitable for empirical data characterized by structural complexity. It accommodates variations in coefficient patterns across categories, minimizes bias resulting from violated model assumptions, and enhances both the interpretability and reliability of the findings. Therefore, this study employed stereotype logistic regression to account for the ordinal nature of the dependent variable and to accurately model the relationships among the key variables.

4. Results

4.1. Descriptive Statistics and Correlation Analysis

Table 2. Descriptive statistics and correlations.

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)
(1)	1.000
(2)	0.141	1.000
(3)	0.019	0.021	1.000
(4)	0.002 †	0.007	0.001 †	1.000
(5)	0.317	−0.039	0.095	0.034	1.000
(6)	−0.129	0.122	−0.123	−0.083	−0.264	1.000
(7)	0.090	0.097	−0.002 †	−0.047	0.323	0.098	1.000
(8)	−0.054	−0.069	−0.485	−0.003 †	−0.139	0.123	−0.018	1.000
(9)	0.041	−0.117	−0.295	−0.014	−0.085	0.075	−0.027	0.390	1.000
(10)	0.052	0.055	0.392	0.004	0.137	−0.088	0.036	−0.597	−0.493	1.000
(11)	−0.092	0.106	0.201	0.016	0.034	−0.045	0.012	−0.188	−0.862	0.096	1.000
Mean	3.722	3.782	0.157	0.521	4.623	1.454	0.626	12.777	0.729	0.083	0.217
S.D.	0.959	0.991	0.200	0.500	1.714	0.566	0.484	0.922	0.445	0.276	0.412
Min	1	1	0	0	1	1	0	9.922	0	0	0
Max	5	5	1	1	7	3	1	13.996	1	1	1

Note: † = not significant at 95% confidence interval; (1) = settlement intention; (2) = urban life satisfaction; (3) = per capita urban regeneration budget execution; (4) = gender (female = 1); (5) = age; (6) = educational attainment; (7) = marital status; (8) = population size; (9) = Si; (10) = Gun; (11) = metropolitan governments (Incheon = 1); S.D. = standard deviation.

presents the descriptive statistics and Pearson correlations among the variables used in the model. The mean score for settlement intention was 3.722 (S.D. = 0.959), while the mean score for urban life satisfaction was 3.782 (S.D. = 0.991), indicating that respondents generally reported positive levels for both variables on a five-point scale. The per capita urban regeneration budget execution, normalized between 0 and 1, had a mean of 0.16 and a standard deviation of 0.20, demonstrating substantial variation across regions. Correlation analysis revealed a statistically significant positive relationship between life satisfaction and settlement intention (r = 0.141, p < 0.01), suggesting that higher satisfaction with local living conditions is associated with a stronger desire to remain in the community. A weak but statistically significant correlation was also observed between the per capita urban regeneration budget execution and settlement intention (r = 0.019, p < 0.01). In addition, a statistically significant but weak association was found between urban life satisfaction and the per capita urban regeneration budget execution (r = 0.021, p < 0.01), implying that regeneration spending may function more as a moderator than as a direct predictor.

4.2. Hypothesis Testing Results

The findings are reported in the stereotype logistic regression models in

Table 3. Stereotype logistic regression models for the hypothesized relationships.

Variables	Model 1		Model 2
	$\mathsf{\beta }$ (S.E.)		$\mathsf{\beta }$ (S.E.)
Gender (Female = 1)	−0.116	***	−0.116	***
	(0.024)		(0.024)
Age	0.671	***	0.671	***
	(0.015)		(0.015)
Educational Attainment	−0.416	***	−0.414	***
	(0.025)		(0.025)
Marital Status (Married = 1)	−0.177	***	−0.177	***
	(0.27)		(0.027)
Population Size (log)	−0.151	***	−0.151	***
	(0.017)		(0.017)
Si	−1.379	***	−1.423	***
	(0.100)		(0.101)
Gun	−1.110	***	−1.154	***
	(0.091)		(0.093)
Metropolitan Governments (Incheon = 1)	−2.765	***	−2.810	***
	(0.102)		(0.104)
Urban Regeneration Budget Execution (A)	0.128	*	−0.573	**
	(0.070)		(0.253)
Urban Life Satisfaction (B)	0.654	***	0.625	***
	(0.018)		(0.020)
(A) × (B)			0.182	***
			(0.063)
${\varnothing }_1$	1.000		1.000
${\varnothing }_2$	0.921		0.921
${\varnothing }_3$	0.868		0.868
${\varnothing }_4$	0.470		0.471
${\theta }_1$	−1.108		−1.270
${\theta }_2$	0.400		0.251
${\theta }_3$	1.328		1.188
${\theta }_4$	1.558		1.483
$\mathrm{W}\mathrm{a}\mathrm{l}\mathrm{d} {\chi }^2$	2385.91	***	2390.52	***

Note: * p < 0.1; ** p < 0.05; *** p < 0.01; reference group = Gu.

. In Model 1, we analyzed the effects of life satisfaction on settlement intention while controlling for sociodemographic and regional variables. Among the control variables, gender had a statistically significant effect, with males reporting lower settlement intention than females ($\beta$ = −0.116, $p$ < 0.01). Age was positively associated with settlement intention ($\beta$ = 0.671, $p$ < 0.01), indicating that older individuals were more likely to desire continued residence in their current communities—likely reflecting stronger place attachment and lower geographic mobility among older cohorts in South Korea [58]. Conversely, educational attainment had a negative effect ($\beta$ = −0.416, $p$ < 0.01), suggesting that individuals with higher education levels are more inclined to relocate, possibly due to better access to employment opportunities, greater financial mobility, and stronger aspirations for upward housing moves in the competitive metropolitan housing market [58]. Marital status also showed a significant negative association ($\beta$ = −0.177, $p$ < 0.01), meaning that unmarried individuals tended to express lower settlement intention compared to their married counterparts; this pattern may reflect the greater flexibility and mobility of single-person households, which have been growing rapidly in South Korea’s urban centers [59]. Finally, log-transformed population size was negatively associated with settlement intention ($\beta$ = −0.151, $p$ < 0.01), indicating that residents in more densely populated areas tend to show lower willingness to stay long-term—a tendency that may be linked to higher housing costs, congestion, and environmental stress in large metropolitan jurisdictions, which often drive internal migration toward less dense surrounding areas.

At the regional level, both dummy variables for Si (cities) and Gun (counties) showed negative effects on settlement intention, with coefficients of β = −1.423 (p < 0.01) and β = −1.154 (p < 0.01), respectively, compared to the reference category Gu (districts). This indicates that residents living in Si or Gun areas reported significantly lower levels of settlement intention than those in Gu areas. The variable for metropolitan governments also had a strong negative effect (β = −2.810, p < 0.01), suggesting that residents in Incheon were significantly less likely to intend long-term residence compared to those in Gyeonggi Province (the reference group). Finally, urban regeneration budget execution per capita showed a positive influence on residents’ intention to settle (β = 0.128, p < 0.1). This suggests that higher levels of regeneration spending may enhance residents’ perception that their community is receiving sustained public investment and policy attention. Such perceptions can foster a sense of place value and future potential, which in turn may positively shape their long-term residential intentions.

Life satisfaction had a significant positive effect on settlement intention (β = 0.654, p < 0.01), providing empirical support for Hypothesis 1. This finding aligns with the bottom-up spillover theory, which posits that positive experiences in various domains of daily life accumulate into broader life satisfaction, fostering emotional attachment to one’s community and increasing the intention to stay. Repeated experiences of stable social networks, quality public services, and favorable living environments within the region appear to reinforce the perception that one’s locality provides a desirable basis for living, ultimately translating into behavioral intentions to remain.

In Model 2, the analysis incorporated an interaction term between urban life satisfaction and per capita urban regeneration budget execution to examine whether regeneration investment moderates the relationship between life satisfaction and settlement intention. The interaction effect was statistically significant and positive (β = 0.182, p < 0.01), indicating that the positive relationship between life satisfaction and settlement intention becomes stronger in areas with higher levels of regeneration spending.

This moderating effect is illustrated in Figure 2 and Figure 3. Figure 2 shows that the predicted probability of selecting the highest level of settlement intention (strongly agree) increases with life satisfaction across all levels of regeneration budget execution. However, the slope is noticeably steeper in areas with high per capita budget execution (two standard deviations above the mean: Mean + 2S.D.) compared to those with low budget execution (two standard deviations below the mean: Mean − 2S.D.). This suggests that the positive influence of life satisfaction on settlement intention is more pronounced when regeneration spending is greater.

Conversely, Figure 3 presents the predicted probability of selecting the lowest level of settlement intention (strongly disagree) as life satisfaction increases. The decline is sharpest in areas with higher regeneration spending, further confirming that the dissuasive effect of life satisfaction on negative settlement intention is more evident when regeneration efforts are actively executed.

These findings suggest that urban regeneration policy plays a critical role not only in physical improvements but also in shaping residents’ subjective interpretations of their communities. When regeneration outcomes are visible and tangible, high levels of budget execution operate as a credibility signal of governmental competence and responsiveness. Consistent with policy feedback theory, such visible implementation reinforces institutional trust and strengthens residents’ sense of civic identity, leading them to attribute their improved living conditions to deliberate and effective governance rather than to chance or unrelated factors. This attribution transforms life satisfaction from a purely personal state of well-being into a systemically anchored perception tied to institutional performance. As a result, residents experience greater place attachment, perceive higher future security, and develop stronger confidence in continued community development—psychological mechanisms that intensify the link between daily life satisfaction and long-term settlement intention. In this way, micro-level satisfaction interacts with macro-level governance performance to create a mutually reinforcing dynamic that deepens residential commitment.

5. Discussion

This study found that urban life satisfaction significantly predicts residents’ intention to settle. Individuals who are more satisfied with their daily lives are more likely to express a strong desire to remain in their current communities [26]. This finding aligns with prior research indicating that individuals dissatisfied with life tend to have stronger intentions to relocate [37,38]. Although the execution of the urban regeneration budget did not have a direct effect on settlement intention, it did demonstrate a significant moderating effect. Specifically, in communities with higher levels of budget execution, the relationship between urban life satisfaction and settlement intention was amplified. As life satisfaction increased in these areas, the likelihood of reporting the highest levels of settlement intention rose more sharply. This suggests that residents in high-execution areas view their satisfaction as a reflection of institutional performance and are therefore more inclined to stay. Additionally, among the control variables, older age and being married were associated with stronger settlement intentions, while higher education levels and living in densely populated areas were linked to lower settlement intentions—indicating that individual characteristics interact with broader systemic conditions to shape spatial commitment.

This study enhances theory by demonstrating how the bottom-up spillover perspective and policy feedback theory jointly explain the formation of settlement intentions. The strong positive relationship between urban life satisfaction and settlement intention supports the bottom-up spillover logic: satisfaction in key domains of urban life—such as safety, transportation, housing quality, and public amenities—contributes to a holistic sense of well-being that fosters long-term commitment to a place [34,35]. This pathway illustrates how daily micro-level experiences accumulate into macro-level behavioral intentions, effectively linking subjective quality-of-life assessments with concrete residential choices.

This study underscores the significance of the policy context as a key moderator in this process. Policy feedback theory posits that visible and effective public policies cultivate institutional trust and civic identity by signaling government competence. The notable moderating role of urban regeneration budget execution suggests that when residents associate their life satisfaction with transparent and successful governance, their attachment to the community deepens, intertwining their satisfaction with institutional credibility [36]. In these cases, improved quality of life is viewed not only as a personal benefit but also as evidence of effective public management, which in turn strengthens trust and commitment. Overall, the findings reveal a dual mechanism: micro-level satisfaction drives the desire to remain, while macro-level governance performance amplifies this effect, offering a more comprehensive understanding of how policy implementation influences community resilience through subjective well-being.

The findings provide actionable guidance for local governments in South Korea—and similar contexts—seeking to foster sustainable community settlement and enhance resilience. First, improving the execution rate of urban regeneration budgets should be a strategic priority. It is not enough to allocate funds; what truly matters is effective budget implementation that residents can see and experience. To achieve this, local governments should establish a budget execution task force responsible for project scheduling, streamlining procurement, and coordinating interdepartmental efforts. Adopting digital tracking tools, such as publicly accessible dashboards updated monthly, will allow for both residents and oversight bodies to monitor progress in real time. When regeneration projects are completed on schedule and as promised, they yield tangible improvements in urban infrastructure and daily living conditions. Publicizing this progress through community briefings, online platforms, and partnerships with local media can build trust and credibility among residents. A high execution rate transforms abstract policy promises into concrete quality-of-life enhancements, reinforcing residents’ belief that their community is on the right track.

Second, regeneration efforts should be explicitly resident-centered, focusing on the everyday living conditions that impact people’s daily experiences. To operationalize this, municipalities should conduct annual community needs assessments to identify priority issues, such as affordable housing upgrades, neighborhood safety, public transit access, and revitalized public spaces. These assessments should directly inform project selection and budget allocation. Implementation teams should include resident advisory committees to ensure that initiatives align with community priorities. Additionally, a policy-to-outcome communication strategy should be institutionalized, utilizing newsletters, social media updates, and public events to highlight how specific improvements—such as a renovated park or a new bus route—result from regeneration programs. Such resident-focused interventions, coupled with transparent communication, reinforce civic trust and encourage residents to remain invested in their communities.

Third, sustaining governance continuity and responsiveness over the long timelines typical of urban regeneration projects is essential. Many regeneration initiatives span multiple years or electoral cycles, making them vulnerable to delays and political shifts. Local governments should formalize multi-year regeneration master plans with legally binding provisions to ensure budgetary and administrative continuity across political terms. Creating multi-stakeholder oversight councils—comprising residents, local businesses, NGOs, and academic experts—can help safeguard project momentum and maintain public accountability. Regular feedback mechanisms, such as biannual surveys and town hall forums, should be implemented to adjust plans based on emerging needs and ensure residents feel their voices are heard.

These recommendations emphasize that transparent, inclusive, and effective governance—along with well-planned and monitored implementation—can foster a lasting attachment to place. By fulfilling public investment commitments through structured execution systems, prioritizing policies based on residents’ lived experiences, and maintaining consistent governance, local governments can bolster residents’ determination to remain and contribute to their communities. Implementing these strategies with clearly defined responsibilities, timelines, and community oversight is essential for addressing demographic and social challenges, ultimately strengthening the resilience and coherence of local urban systems.

This study is not without limitations. First, the use of cross-sectional survey data limits the ability to draw definitive causal conclusions about the relationship between urban life satisfaction and settlement intention. This study assumes that life satisfaction influences settlement intention; however, the possibility of reverse causality cannot be ruled out—residents with a stronger intention to settle may evaluate their living environment more positively. Additionally, urban regeneration budget execution may affect life satisfaction, which could, in turn, influence settlement intention. Future research should employ longitudinal or panel data to better address these potential bidirectional or mediated relationships and to capture the evolving nature of satisfaction and settlement behavior over time. Second, there may be a timing mismatch between the measurement of life satisfaction and the budget execution data. The life satisfaction survey was conducted in August–September 2023, while the budget execution figures represent the full-year settlement for 2023. Consequently, a portion of the recorded budget execution may have occurred after the survey period, creating the possibility that some spending included in the analysis could not have influenced respondents’ satisfaction at the time of the survey. Due to data constraints, partial-year execution data were not available; therefore, future research would benefit from using time-aligned or higher-frequency execution data (e.g., monthly or quarterly) to more accurately capture the temporal relationship between budget execution and residents’ evaluations. Third, this study focuses on Incheon metropolitan city and Gyeonggi province, both located in close proximity to Seoul and part of the economically developed, densely populated Seoul metropolitan area. While these regions provide a valuable setting for examining the relationship between urban life satisfaction, budget execution, and settlement intention, their socioeconomic and demographic profiles may not reflect the full diversity of South Korea’s urban and regional contexts. In particular, the findings may have limited applicability to local cities or non-metropolitan areas experiencing more severe aging, economic stagnation, or distinct urban regeneration challenges. Future research would benefit from incorporating regional heterogeneity analysis—comparing results across metropolitan and non-metropolitan areas or across regions with varying demographic and economic conditions—to assess the extent to which these relationships hold under different local circumstances. Lastly, although this study uses budget execution as a quantitative proxy for policy implementation, it does not account for residents’ qualitative perceptions of regeneration outcomes. Future research could benefit from mixed-method approaches that combine administrative data with resident interviews or satisfaction audits to more holistically assess the feedback loop between policy and behavior.