"Can I Buy a House Before I Die?" The Dream of Homeownership for 20s and 30s, Is It Achievable? [Heo Midam's Youth Report]

Housing Prices Soar... Young Generation Struggles to Buy a Home Even Saving Their Salaries
Moon Administration Announces 22 Real Estate Measures Since Inauguration
Young People Facing Difficulty in Buying Homes Also Lose Work Motivation

[Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] [Editor's Note] How is your youth remembered? From teenagers to college students and office workers, we share the joys and sorrows unique to 'youth.'

"Unless you're born with a 'gold spoon,' how can you buy a house with just a monthly salary?", "You have no choice but to live off your parents."

Recently, as apartment prices in Seoul have surged, the number of people in their 20s and 30s suffering from anxiety about 'owning a home' is increasing. Young people express despair, saying that no matter how much they save and scrimp on their salaries, it is virtually impossible to buy a home without parental support.

Some among them tried to buy a home through so-called 'Yeongkkeul loans' (loans taken by pulling together all their soul and resources) before prices rose further, but with the government recently tightening loan regulations, even this has become difficult.

Kim, a 30-something office worker, said, "I've lived without owning a home for about 10 years, and having lived in jeonse (long-term deposit lease) for so long, I feel like I'm the only one around without a house." He added, "Seeing the nonstop rise in Gangnam house prices, if I don't buy now, I'll have to pay even more later."

He continued, "I was too complacent about buying a home until now. I feel like I have to take on debt to buy a house, but it's hard to even think about it."

Recently, concerns among young people about 'owning a home' have also been voiced on real estate communities. One netizen criticized the government's real estate policies, saying, "The government has recklessly passed bills without considering side effects, which has led to the current surge in real estate prices."

He added, "It would have been better to just stay still. The government stirred things up unnecessarily and only raised house prices. What home ownership? I think I'll live in monthly rent my whole life and retire like that," he lamented.

Criticism of the June 17 real estate measures also continued. On an online cafe opened on the 24th of last month, a case was posted about being blocked from apartment balance loans due to retroactive application of the measures.

A cafe user who identified as a newlywed couple said, "We decided to sell our current home and take out a loan for the shortfall," adding, "We purchased an apartment, but the June 17 measures blocked the loan, putting us in a difficult situation." They lamented, "We don't know what to do about the intermediate and final payments, or what to do with the deposits we've already paid." They questioned, "Are we really speculators when we're wiping away tears alone, worried about each other?"

As criticism continued, the government announced another real estate measure on the 10th. The so-called July 10 real estate measures focus on strengthening taxation on multi-homeowners and supplementing support for actual buyers.

It also aims to increase the scope and supply ratio of special first-time homebuyer allocations and raise tax burdens such as comprehensive real estate tax, capital gains tax, and acquisition tax on multi-homeowners to support non-homeowners in buying their first home.

A citizen visiting Lotte World Tower in Jamsil, Songpa-gu, Seoul, is looking at a nearby apartment complex. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

However, apart from this, there are criticisms that home prices have risen so much that despite various government real estate measures, the hope of owning a home is just a 'dream.'

According to KB Kookmin Bank, the average apartment sale price in Seoul rose from 869.97 million won in January to 915.3 million won in May, an increase of about 50 million won. Considering that the average starting salary for college graduates is around 30 million won, it is uncertain whether saving salary for 30 years would be enough to buy a home in Seoul.

As a result, more than 3,000 posts criticizing real estate measures have been posted on the Blue House's public petition website. On the 14th, a satirical petition about government real estate regulations was also posted on the Blue House petition board.

One petitioner likened houses to 'chicken,' calling multi-homeowners 'multi-chicken owners' and temporary two-homeowners 'temporary two-chicken owners,' criticizing the government for trying to solve real estate problems only through punitive taxation.

The petition included statements such as, "For temporary two-chicken owners, if they don't finish eating one chicken within an hour after finishing the other, impose capital gains tax as punishment," "If you eat two chickens in a regulated area, impose property tax on the wings, shoulders, and breasts," and "If you order chicken again shortly after eating, impose acquisition tax." The petition received over 12,000 endorsements but was made private within a day.

Stock photo. Apartment complexes in the Yongsan-gu area of Seoul. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

As it becomes harder to buy a home, young people are lamenting that they have even lost their motivation to work.

Office worker Kim (29) said, "In my parents' generation, if you saved your salary diligently, there was hope for home ownership. But for us, no matter how much we save, buying a home is not easy," adding, "Isn't working just to have a better house and better food? If it comes to this, working loses its meaning." He added, "It's to the point where it's better not to marry and just stay at my parents' house."

Experts point out that the desire of young people to own a home will inevitably continue.

Kim Kitae, a researcher at the Korea Urban Research Institute, said, "Compared to before, prices of multi-family houses have risen, but not abnormally like apartments," and "For households living in jeonse or monthly rent, even putting a nail in the wall during their stay is a sensitive issue. Since they can't freely use the house, the desire to own a home continues among young people."

He added, "The problem is that young people's incomes cannot keep up with the rate of house price increases," and "While regulations on multi-homeowners are being strengthened, there are no regulations on non-homeowners at all."