Homeownership Out of Reach: Homeownership Rate Among 20s and 30s Hits Record Low at 27%

Record-High Net Asset Gap Between 50s/60s and Young Adults

Homeownership Rate for the Bottom 20% in Net Assets Falls to 6.8%

As rising housing prices and stricter loan regulations make homeownership increasingly difficult, the rate of 20s and 30s owning homes has fallen below 30%. The asset gap between young adults and middle-aged or older generations has reached a record high.

According to the National Statistical Portal (KOSIS) of the Ministry of Data and Statistics on July 26, among households aged 39 and under, the proportion who own their residence was 27.7% last year. This represented a drop of 2.4 percentage points from the previous year and is the lowest level since these statistics were reorganized in 2017.

Jamsil Apartment.

The homeownership rate among those aged 39 and under peaked at 40.7% in both 2018 and 2019 but has continued to decline, dropping by 13 percentage points over the past seven years. Last year was the first time this age group's homeownership rate fell below 30%.

By contrast, the homeownership rate for those in their 50s was 63.5%, and for those aged 60 and over, 68.5%. Although these rates decreased by 0.6 and 0.4 percentage points, respectively, compared to the previous year, the drop among younger generations was much larger. As a result, the ownership rate gap between those in their 50s and those in their 20s and 30s widened to 35.8 percentage points, while the gap between those aged 60 and over and the 20s and 30s reached 40.8 percentage points.

The difference in these two indicators is the largest since 2017. The gap in homeownership rates between people in their 50s and those aged 39 and under narrowed from 24.5 percentage points in 2017 to 23.0 percentage points in 2019 but has expanded each year since. Similarly, the gap between those aged 60 and over and those aged 39 and under shrank from 28.5 percentage points in 2017 to 27.1 percentage points in 2019, but then has continuously widened.

The generational wealth gap also increased along with differences in homeownership. Last year, the net assets of households aged 39 and under stood at 219.5 million won, down 0.9% from the previous year. By contrast, the average net assets of those in their 50s rose by 7.9% to 551.61 million won, and those aged 60 and over rose by 3.2% to 535.91 million won. The net assets of people in their 50s were 2.5 times those of people aged 39 and under, while those of people aged 60 and over were 2.4 times larger. Both figures are the highest since these statistics have been compiled in 2017.

The housing ownership gap also widened between asset classes. Last year, the homeownership rate of the bottom 20% in net assets (first quintile) was only 6.8%, the lowest since records began. The homeownership rate in the first quintile was 10.3% in 2017, climbing briefly to 10.6% in 2018, but has not increased since.

On the other hand, the homeownership rate last year for the top 20% in net assets (fifth quintile) was 84.2%. While this was a slight decline from 84.5% in 2017, there was no significant difference. As a result, the gap in homeownership rates between the top and bottom 20% in net assets reached 77.4 percentage points, the largest since 2022 (79.8 percentage points). In terms of the average price of occupied homes, the fifth quintile averaged 686.77 million won—117.4 times higher than the average for the first quintile (5.85 million won).

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