Aim Many of the previously identified environmental risk factors for fall‐related outcomes (e.g. flooring, stairs and steps, kitchen, and bathrooms) are amenable to change, but the extent of the changes on these home‐related risk factors are conditional on home ownership of the elderly. This study aims to test whether lack of home ownership is associated with a higher risk of falls, and a higher likelihood of reporting fear of falling and activity limitations due to fear of falling among older adults in South Korea. Methods Using data from the first two waves (2006 and 2008) of the Korean Longitudinal Study of Aging, the associations between home ownership variables and three fall‐related outcomes were examined in two regression models. A logistic regression model of any falls in the past 2 years was estimated to examine whether older adults living in short‐term rental homes based on monthly rent have an increased risk of falls. A probit model accounting for sample selection was estimated to examine whether the two related outcomes, fear of falling and limiting activities due to fear of falling, are associated with home ownership status. Results Compared with owned home, short‐term rental home predicted a higher likelihood of incident of falls and activity limitation due to fear of falling. Conclusions The study findings suggest that the lack of home ownership with unstable housing tenure is an important risk factor for fall‐related outcomes among older adults in South Korea. Geriatr Gerontol Int 2012; ●●: ●●–●●.