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|TITLE||Housing policy recommendations for addressing youth housing issues|
Youth housing conditions and housing consumption
￭ The Korean youth are facing more housing instability than other generations on waning economic growth potential after the global financial crisis, deteriorating job quality, house price hikes and ‘jeonse’ (lump-sum deposit housing rental) crunch.
￭ In particular, the number of young people aged between 25 and 34, who reside in jeonse housing is slumping along with the decreased area of their housing consumption, while their housing expenditure is on a sharp rise due to rising monthly rents.
Prospects for youth households’ capacity to pay for housing expenses
￭ Low quality jobs as well as slowing income growth are adding to the burden of housing rents for young households in the low income bracket in Seoul, Gyeonggi, Ulsan and Busan, causing affordable housing shortage.
￭ If this situation continues, young people have no choice but to opt for houses beyond their financial ability, which would aggravate housing costs and trigger conflicts among young generation surrounding housing choices.
Policy tasks for handling youth housing issues and supporting housing stability
￭ The youth’s increased housing costs are fueling angst about housing, dampening housing consumption, derailing the moving path from monthly rental and jeonse to owner-occupied houses and intensifying parents’ financial woes to help them buy a house.
￭ To address this problem, aid programs for the youth’s house purchases and jeonse house rentals, public rental housing supply and special housing pre-sale are put in place, but calls are rising for the government to revamp them.
❶ A future-oriented approach should be taken to lay out policies to support housing stability for the youth, especially low-income bracket and those aged 25 to 34 in consideration of housing welfare policies.
❷ It is recommended to come up with measures to support the youth’s housing stability and help them build up assets through savings and buy a house.
❸ It is suggested to develop wealth-building products for young people, establish a long term master plan for their housing stability, look into their housing conditions on a periodical basis and foster suppliers of housing customized for the youth living in cities.
Soouk Lee, senior research fellow at KRIHS
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