This paper examines the effect of building public housing complexes, called Bogemjari districts on neighboring apartment prices. This study exploitstransaction data(2006-2014) provided by the Ministry of Land, Infrastructure and Transport and includes Bogemjari districts in Seoul, Gyeong-gi, andIncheon. To investigate the causal inference, this study implemented the DID method. Findings show that the announcement of Bogemjari district decreasesthe neighboring apartment prices by 5.7%, and remains stable when the number of transactions is included in the model. In order to infer themechanism of these price effects, we analyzed changes in (1) actual transaction volume and (2) population inflows and outflows(especially school-agepopulation). We also discussed the possibility of the negative expectation of public housing and the expectations for future supply increases.