"This Life Is Ruined" 20s and 30s 'Give Up on Buying a Home'... Even 'Real Estate Blue' [Heo Midam's Youth Report]

Young People Complain of 'Real Estate Blues' as Housing Prices Soar
7 out of 10 Adults Say Moon Government's Real Estate Policy Is Wrong
Experts Say "Vicious Cycle of Jeonse and Monthly Rent Crisis... Fundamental Measures Needed First"

On the 2nd, a real estate company's property listing notice in Seoul was left blank. The photo is unrelated to specific expressions in the article. [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.'

"Office workers will never be able to own a home no matter how much they earn in their lifetime." It's frustrating because house prices were expected to fall but only keep rising."

As house prices and jeonse (long-term lease) prices continue to rise daily, the worries of young people are deepening. The government has introduced its 24th real estate measure, including the three lease laws, to curb soaring housing prices, but it has failed to produce significant effects, increasing anxiety among people in their 20s and 30s that they will ultimately be unable to own a home.

Given this situation, young people are complaining of 'real estate blues,' criticizing the government's real estate policies. 'Real estate blues' refers to the depression experienced by non-homeowners who feel frustrated by the continuously skyrocketing house and jeonse prices. Experts point out that supply issues must be addressed first to stabilize the real estate market.

On online communities, especially real estate forums, young people continue to lament that they will never be able to own a home. One netizen, who identified as a 30-something office worker, said, "Even combining my husband's and my salaries, our take-home pay doesn't reach 5 million won per month. How can we raise children and pay off loans with this? On top of that, house prices are rising so much that I'm worried we might never be able to own a home."

They added, "I wanted to own a home within five years of marriage, but with the current salary, it's just a dream. It seems that homeownership for office workers is indeed just a dream," they lamented.

President Moon Jae-in is presiding over a Cabinet meeting at the Blue House on the morning of the 17th. [Image source=Yonhap News]

Previously, President Moon Jae-in expressed confidence in real estate policies during a 100-day inauguration press conference held at the Blue House in August 2017.

At the time, President Moon emphasized, "To liberate ordinary people and young people from the burden of high housing rents such as crazy jeonse and monthly rents that have tormented them, stabilizing real estate prices is necessary."

He continued, "The real estate measures announced by the government this time are the strongest ever, so I am confident that they will be sufficient to control real estate prices. If there are signs of prices rising again, the government has even stronger measures ready in its pocket."

Since then, the government has announced 24 real estate measures, but they have shown little effect, and instead, house prices have continued to rise, causing side effects.

As a result, citizens' feelings of deprivation and depression due to the rapid rise in real estate prices have grown stronger. Kim (27), an office worker, said, "'Owning a home' has long been given up on," adding, "Salaries remain the same, but house prices keep soaring. A few years ago, there was hope that if you worked hard, you could own a home. But now, that hope is gone. In the metropolitan area, it is absolutely impossible to realize the dream of homeownership."

He added, "Isn't the reason we work to enjoy a good life in a good home? The more real estate prices rise, the more I don't even know why I go to work, and I feel powerless."

Citizens' reactions to real estate policies are also reflected in related surveys. According to a survey conducted by Gallup Korea from the 3rd to the 5th among 1,002 adult men and women, 68% of respondents said the government's real estate policies are 'doing poorly.' In contrast, only 15% responded that they are 'doing well.' In other words, 7 out of 10 citizens feel there are problems with the real estate policies.

The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

Recently, a tragic incident occurred where a husband in his 30s, who had conflicts over apartment purchases, killed his wife and then took his own life, sparking controversy. The opposition party pointed to this as a consequence of the current government's real estate policies and the 'three lease laws.'

According to media reports, around 1 a.m. on the 27th, in an apartment in Mok-dong, Yangcheon-gu, Seoul, husband Jo (37) stabbed his wife Baek (38) with a weapon and then jumped to his death.

The couple, who owned a home in Gyeonggi Province, moved to an apartment in Mok-dong a few years ago seeking a better school district for their 6-year-old daughter, but recently they frequently argued over apartment purchase funds.

They wanted to buy a larger apartment of 115.7㎡ (35 pyeong) than their jeonse home of 89.2㎡ (27 pyeong), but conflicts arose because the market price had surged from 1 to 1.1 billion won when they moved to Mok-dong four years ago to 1.9 to 2 billion won now.

Regarding this, Kim Ye-ryeong, spokesperson for the People Power Party, criticized in a statement, "A truly tragic and devastating incident occurred where a couple living in Mok-dong, Seoul, died after arguing over purchase funds. Who can say this is not the result of the Moon administration's 24 patchwork measures and the three lease laws?"

She added, "In a situation where people are struggling due to the current government's real estate policies, it has made the public even more anxious. It is a numb feeling that leaves one speechless, reflecting their own reality and future."

Experts emphasize that supply issues must be prioritized to stabilize the real estate market.

Professor Kim Tae-gi of Dankook University's Department of Economics said, "The rapid rise in house prices is leading to a jeonse crisis and a monthly rent crisis," adding, "The government is preparing policies to stabilize the real estate market and ease prices, but it cannot overcome the actual market supply and demand situation."

Professor Kim added, "While coercive measures to ease real estate prices may have short-term effects, the fundamental cause of supply suppression must be resolved. Otherwise, additional measures are unlikely to be very effective."