Background: Housing poverty is a potential risk factor for depression in elderly people; however, this relationship depends on the socio-cultural background. This study aimed to determine if housing poverty is a risk factor for depression in Korean elderly people. Methods: A total of 10,083 people aged 65 or older who participated in the National Survey of Older Koreans in 2017 were included. Housing poverty was defined as “living underground,” “semi-basement,” or “rooftop.” Depression was assessed using the Short Form of the Geriatric Depression Scale (SGDS). Comparisons of baseline variables were analyzed using the χ2 test or student’s t-test, as appropriate. Logistic regression was used to analyze the risk of depression, with or without adjustment. Results: The odds ratio (OR) of depression was higher in the housing poverty group (OR, 1.55; 95% confidence interval [CI], 1.15–2.09), even after adjusting for age and sex (adjusted odds ratio [aOR], 1.43; 95% CI, 1.05–1.95). However, after adjusting for income levels, ADL, and IADL disability, there was no significant association between housing poverty and depression (aOR, 1.11; 95% CI, 0.79–1.56). People with ADL or IADL disability also showed nonsignificant results. Conclusion: In Korea, even though elderly people with housing poverty are a high-risk group for depression, housing poverty is not an independent risk factor. It is thought that low socioeconomic status and functional disabilities of people with housing poverty are associated with depression. To reduce the risk of depression, comprehensive intervention is needed for elderly people with housing poverty.