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Excessive housing costs significantly affect household financial stability and overall well-being. This study investigated the impact of South Korea's housing allowance programme on the physical and mental health of household heads, utilising data from the Korea Welfare Panel Study (2009-2021). To overcome selection bias, we employed propensity score matching to construct a comparable control group. We then estimated a two-way fixed effects event study model to assess the dynamic health impacts following the programme's significant reform in 2015. Our analysis confirms the absence of pre-existing differential trends, supporting the validity of our research design. The results indicate that the policy's positive effects were not immediate but emerged over time. A statistically significant reduction in depression appeared approximately four years post-reform. For physical health, a consistent and statistically significant improvement was observed from 2017 onwards, highlighting a delayed but sustained positive impact. The findings, validated by a rigorous quasi-experimental design, emphasise the critical role of housing welfare policies in promoting health equity and suggest the benefits of such policies may accumulate over time.