"Inherited House? No One Wants to Live There"... Young People Leave the City Center [134,000 Vacant Homes Report] ③

Proliferation of Vacant Homes in Old Downtowns of Small and Medium-Sized Cities
Population Decline and Canceled Redevelopment Projects Intertwined
'City Switching' Accelerates the Decline of Old Downtowns
Profits from New Town Development Should Be Collected and Redistributed

Editor's Note'17,603 households.' This is the number of vacant houses in Seoul, Gyeonggi, and Incheon where no one lives. When expanded nationwide, the figure rises to 134,009 households. Even in urban areas known for housing shortages, the number of vacant homes is steadily increasing. These vacant houses in city centers soon turn into abandoned buildings. They become so-called zombie houses?structures that remain but are uninhabitable. In particular, once these vacant houses appear, they tend to spread like an epidemic. The proliferation of vacant homes creates high-crime areas and produces ghost towns. Asia Economy will highlight the issue of vacant houses sweeping through Seoul and small-to-medium-sized cities over five installments and propose possible solutions.

"The owner of the house across the street passed away quite some time ago. I heard the children inherited it, but it's been left empty for years."

A dilapidated house is left abandoned in a residential area of Michuhol District, Incheon. Photo by Yoon Dongju

On May 19, in Juan 4-dong, Michuhol-gu, Incheon, a resident in their seventies clicked their tongue while pointing at a single-family house. Electric wires were tangled around the railing of the house, which had not been touched by human hands for a long time. According to local residents, the building has remained vacant since 2020. The local housing association tried to contact the current owner several times to obtain a resident consent form, but to no avail. An official from the association said, "The owner neither manages the house nor tries to sell it," adding, "Even though we inform them that they will be taxed if the house is left unattended, there has been no response at all."

This was not the only vacant house in the area. As I headed up the hill in the village, a three-story multi-family house came into view. The building could accommodate six households, but the entrance was tightly locked with a chain. A resident I met in the village said, "It's been quite a while since the lights were last on in that building," adding, "It seems the entire block has become vacant."

A three-story multi-family house in the Michuhol District of Incheon is being neglected. Photo by Yoon Dongju

Recently, this type of vacant house has been appearing in metropolitan cities and small-to-medium-sized cities alike. As the population of old city centers moves out to new towns on the outskirts, which are equipped with new infrastructure, the original downtown areas are left empty, resembling a donut-shaped void. In Seoul, vacant houses have sporadically appeared mainly in areas where redevelopment projects have been canceled. In small-to-medium-sized cities, however, the so-called 'city switching' phenomenon has led to a mass increase in vacant homes. Experts define this as the 'small-to-medium-sized city type of vacant house.'

Population Decline... and the Additional Blow of Canceled Redevelopment Projects

The old downtown of Michuhol-gu, Incheon, is also struggling with a growing number of vacant homes. According to 'Binjibae,' the vacant house information platform of the Korea Real Estate Board, there are 1,022 vacant homes in Michuhol-gu, accounting for the largest proportion (24.5%) in Incheon. Of these, 154 are concentrated in Juan-dong alone.

A residential area in Michuhol District, Incheon. Vacant houses left unattended can be seen in various places. Photo by Dongjoo Yoon

Residents of Juan-dong cited population decline as the main reason for the surge in vacant homes. According to the Ministry of the Interior and Safety's resident registration statistics, the population of Juan-dong (covering districts 1 to 8) dropped by 7.3% from 156,174 in 2015 to 144,796 last year. Kim, a 75-year-old resident who has lived in Juan-dong for 30 years, said, "Young people have moved to the outskirts of Incheon, leaving only the elderly behind," adding, "The average age of residents in the village is in their seventies or eighties."

Under these circumstances, the cancellation of redevelopment projects has further accelerated the spread of vacant homes. Previously, Juan 2-dong and 4-dong were designated as redevelopment promotion districts in 2008, but due to the economic downturn and opposition from residents, 10 out of 20 districts (including four maintenance zones) began the process of having their redevelopment status revoked. Currently, four out of the 20 districts have been released from the redevelopment promotion designation, and 10 remain as maintenance zones.

Non-local investors who had purchased houses for investment tried to rent them out, but there were no tenants willing to live in the run-down homes. Kim said, "The houses on the hill were built decades ago and most don't even have septic tanks," adding, "No matter how cheaply they are offered, the houses are so old and there are so few young people in the village that there is no one to rent them."

Vacant Homes in Old Downtowns Caused by New Town Development... The Need for Integrated Development

Most small-to-medium-sized cities in Korea are currently experiencing a 'complex type' vacant house problem similar to that of Incheon. As the population declines and the old downtown deteriorates, redevelopment projects are initiated but often fizzle out, resulting in a rapid increase in vacant homes.

Jang Namjong, Ph.D. in Engineering at the University of Seoul, explained, "Most small-to-medium-sized cities, such as Andong in North Gyeongsang Province and Chuncheon in Gangwon Province, experience vacant house problems due to the same mechanism." He added, "As the inflow of external population decreases and the city center becomes desolate, redevelopment is pursued. However, if land prices soar during this process, the business feasibility declines and development is delayed."

A dilapidated house is left abandoned in a residential area of Michuhol District, Incheon. Photo by Dongju Yoon

Experts emphasized the need to identify the fundamental causes of population decline. The root cause lies in the development of suburban areas. Overdeveloped new towns on the outskirts absorb both the population and jobs from the old downtowns.

In Incheon, the population imbalance between new towns and old downtowns is widening. According to Incheon City, the districts classified as old downtowns?Dong-gu, Michuhol-gu, Bupyeong-gu, and Gyeyang-gu?have seen their populations decrease over the past 22 years since 2000. In contrast, districts that include new towns such as Songdo, Yeongjong, and Cheongna International City have seen significant population increases. Seo-gu's population grew by 229,232 people (67.73%) compared to 2000, while Yeonsu-gu increased by 123,933 people (47.53%). Jung-gu's population rose by 75,193 people (104.51%) with the development of Yeongjong International City.

This year, most of Incheon's new housing supply is also concentrated in new towns. Of the 22,796 new apartments in Incheon, 65.7% (14,979 units) are expected to be supplied in the new towns within the Free Economic Zone (Jung-gu, Yeonsu-gu, and Seo-gu). An official in the construction industry explained, "If you purchase inexpensive land and supply a large number of new apartments, you can generate significant profits. It's a much easier process than redevelopment projects."

Some suggest that 'integrated development,' rather than further suburban expansion, is necessary to break this vicious cycle. This approach would involve construction companies investing profits earned from new town development back into the old downtowns to revitalize declining areas. It would also mean sharing the financial burden that local governments have shouldered to prevent the decline and spread of vacant homes in old downtowns.

Kangrae Ma, professor of Urban Planning and Real Estate at Chung-Ang University, emphasized, "When suburban development causes deterioration in old downtowns, the costs of recovery must be paid with taxes collected from the community," adding, "A system should be introduced at the pan-government level to collect contributions from the profits of new town development and invest them in old downtowns."

An alley lined with vacant houses in the Michuhol District of Incheon. It exudes a gloomy atmosphere even in the middle of the day. Photo by Dongju Yoon

There are also calls for local governments to independently establish urban development plans based on their own population projections. Choi Eunyoung, director of the Korea Urban Research Institute, said, "Rather than relying solely on Statistics Korea, cities and counties should also develop scenarios for housing demand and supply based on future population trends," adding, "We need to move away from the practice of blindly building houses and instead review project approvals based on population projections."