The purpose of this study is to estimate the housing demands in order to address a suitable housing policy for a metropolitan city of Daegu in South Korea. Although the population of Daegu declines, a number of households increase since a number of people per households decrease. Currently a household with four people is a main housing type, however it is expected that a household with one or two increase. In 2017, a household with one will be dominant. Estimating housing sizes and their demand, the households below $60;m^2$ gradually decline while those over $85;m^2$ is expected to rise. Nevertheless, the demands for the house below $60;m^2$ in its size increase at 39.2 per cent. Currently a house with $60;m^2$ is being constructed. In particular, that of $85;m^2$ gradually increases. The current trends may result in the widening gaps between the household demand and supply of Daegu. Therefore, it is recommended that relevant local authorities and developers should consider providing various house sizes by taking the current housing demand of Daegu into account.