7 out of 10 Young Adults Say "I Need My Own Home"

85% Respond "House Prices Are Not Appropriate"
Negative Responses on House Prices Double in 3 Years

The government is scheduled to hold a meeting of related ministers to review the real estate market and announce measures for the Jeonse system on the 19th. On the 18th, property listings were posted at a real estate agency in Jung-gu, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Han Jinju] Seven out of ten young people believe that they should own a house in their name despite the recent rise in housing prices.

According to the ‘2020 Youth Social and Economic Status Survey’ conducted by the Korea Youth Policy Institute from July to September last year targeting 3,520 individuals aged 15 to 39, 68.6% of young people responded that they think they should have a house in their own name.

However, when asked whether the current housing prices are appropriate, 85.2% answered negatively. The response of ‘not appropriate at all’ regarding housing prices increased significantly from 27.2% in 2018 to 46.5%. The reasons for believing homeownership is necessary were ‘being able to live for the desired period without moving (27.5%)’, ‘for asset accumulation and preservation (26.1%)’, and ‘to avoid the burden of rising rent (23.1%)’, in that order.

As housing prices soared sharply, the proportion of married individuals purchasing homes with parental assistance was also high. Among married couples, 36.8% purchased on their own, 28.6% received partial help from parents, and 26.4% combined parental help with their own contributions. Among unmarried single-person households, the highest percentage (43.5%) responded that they covered housing costs on their own. The youth housing policies most needed by independent single-person households were △expansion of youth housing supply policies 63.0% △support policies for youth housing costs 23.2% △improvement of youth housing environment 7.6%, in that order.

The young respondents were experiencing confusion due to the rapid rise in real estate prices. Mr. H, a man in his 20s living in monthly rent in Seoul, said, "While it has become a means of asset accumulation, unnecessary increases in housing prices are harming some people, and since it is a space created for rest, I think the purpose has been misplaced." Mr. M, in his 30s living in a Jeonse (long-term deposit lease), said, "The amount I can save from my salary is limited, and the value of money is declining, but seeing housing prices rise, there is no answer, and ultimately the only investment is in housing."

Mr. G, in his 20s living in public rental housing, said, "Although some say it is okay to start a newlywed life in a small room, I think it is better not to marry and live one’s own life than to do that." Mr. C, a single-person household living in a semi-basement room, said, "It is easy to move from monthly rent to Jeonse, but the process of moving to homeownership is difficult and may even be impossible."