2,822 Compete for One Unit: Where Young People and Newlyweds Flock Amid Seoul's Rental Crisis

91,772 Applicants for 1,884 Units

Average Competition Ratio Hits 48.7 to 1, Popular Complexes Top 2,000 to 1

Surging Demand for Public Rentals Amid Rising Jeonse and Monthly Rents

As the shortage of rental housing in Seoul continues, the first application round for 'Happy Housing' this year drew more than 90,000 applicants. In major popular complexes in the city, some competition ratios exceeded 2,000 to 1.

A view of the apartment buildings seen from Lotte World Tower in Songpa-gu, Seoul. Yonhap News.

According to the "Final Competition Rate for the 2026 First Happy Housing Tenant Recruitment" released by Seoul Housing & Communities Corporation (SH) on June 23, a total of 91,772 people applied for 1,884 units. The average competition rate stood at 48.7 to 1, a significant increase compared to the third recruitment round held at the end of last year, which averaged 29.7 to 1.

In particular, some highly sought-after complexes saw competition ratios surpassing 2,000 to 1. The most competitive unit was a 40㎡ apartment at "Yongsan Central Harrington Square" in Yongsan-gu, where 2,822 people applied for one youth-priority unit, resulting in a 2,822 to 1 ratio. This is the highest since the 3,661 to 1 competition rate for a youth-priority unit at "Ahyeon Prugio Classy City" in Seodaemun-gu in 2023. Similarly, for a 34㎡ youth-targeted unit at "E-Pyeonhansesang Songpa Park Central" in Songpa-gu, 2,614 people applied for one available unit.

"Godeok Arteon" in Gangdong-gu attracted 2,506 applications for two newlywed-priority units, resulting in a competition rate of 1,253 to 1. At "Imun IPark Xi" in Dongdaemun-gu, 2,130 people applied for two 33㎡ youth-priority units, and at "Shinmagok Byucksan Blooming" in Gangseo-gu, 1,006 people applied for a single 59㎡ newlywed-priority unit. As a result, several key complexes in Seoul posted competition ratios around 1,000 to 1. In addition, in Daechi-dong, Gangnam-gu—a district favored for its school districts—3,580 people applied for four youth preliminary tenant spots for a 35㎡ unit at "Daechi Le-EL," resulting in a competition rate of 895 to 1.

Happy Housing is a type of public rental housing supplied in urban centers, including areas near subway stations, for young people, university students, newlyweds, and the elderly who do not own homes. It features rental fees set at 60 to 80% of market rates. The ongoing instability in Seoul's rental market is believed to have driven up demand among young people and newlyweds.

For example, according to this application notice, the rental terms for a 59㎡ unit at Godeok Arteon were set at a deposit of 156.8 million won and a monthly rent of 628,000 won. In comparison, a private monthly rental for the same size unit is listed at a deposit of 100 million won and a monthly rent of around 2.9 million won, which means that, even accounting for the deposit difference, the monthly rent burden is significantly lower for Happy Housing.

The supply shortage in Seoul's rental market also persists. According to Korea Real Estate Board, the jeonse supply-demand index for Seoul apartments in the second week of June was 122.5—the highest in about five and a half years since February 2021. Last month, the monthly rent supply-demand index in Seoul was 114.8, up 5.1 points from the previous month. Generally, an index above 100 indicates that demand exceeds supply.

The upward trend in jeonse and monthly rent prices is also accelerating. According to Korea Real Estate Board, as of May this year, the cumulative increase in Seoul apartment jeonse prices was 3.58%, about six times higher than the same period last year. The cumulative increase in monthly rent was 3.37%, more than four times higher than last year’s figure for the same period. With the rental market's supply shortage continuing, demand for public rentals such as Happy Housing is expected to remain high for the time being.

This content was produced with the assistance of AI translation services.