"Father, Please Help Me Buy a House" - Half of Home Purchases by Buyers in Their 20s Used Parental Support

Analysis of Housing Purchase Funding Plans (January–July) by Kim Jongyang's Office

Widening Funding Gap by Age Group Based on Asset Holdings

The top source of funding for homebuyers in their 20s and 30s this year was found to be 'bank loans.' Among home purchases by people in their 20s, one out of every two transactions received support from parents. From their 40s and onward, proceeds from the sale of existing real estate became the largest source of funding. While younger buyers were dependent on debt and parental support, middle-aged and older buyers primarily relied on their retained assets such as existing homes or savings accounts.

According to data submitted by the Ministry of Land, Infrastructure and Transport to Assemblyman Kim Jongyang of the National Assembly’s Land, Infrastructure and Transport Committee on September 25, the total reported funds for home purchases between January and July 2026 amounted to 129.9339 trillion won. This figure already surpassed the total annual amount for 2024, which was 122.4469 trillion won, within just seven months.

The biggest group of homebuyers in the housing market shifted from those in their 40s to those in their 30s for the first time in four years. In terms of total reported funds for home purchases by age group between January and July this year, buyers in their 30s accounted for the largest share at 47.3048 trillion won (36.4%). Throughout 2024 and until last year, buyers in their 40s outpaced those in their 30s, but as demand among people in their 30s increased this year, buyers in their 40s (38.4517 trillion won, 29.6%) fell to second place. They were followed by those in their 50s (22.4126 trillion won, 17.2%), those aged 60 and above (18.8617 trillion won, 14.5%), and those in their 20s (2.8832 trillion won, 2.2%). Even minors under the age of 20 reported 56 home purchase transactions during this period, spending a total of 19.9 billion won (0.02%).

Details on the sources of funding among buyers in their 20s revealed significant disparities in asset levels from the very beginning. The leading source for buyers in their 20s was loans from financial institutions (34.8%), followed by transfer of lease deposits such as for jeonse (15.3%), and deposits held in financial institutions (15.1%). Loans and gap investments together accounted for half of all funding sources. The fourth largest source was 'other borrowings' from family and others (11.5%), while 'gifts/inheritance' was fifth (11.3%). The combined share of these two family-related support items was 22.8%. This figure has continued to increase every year—17.0% in 2024, 20.3% in 2025, and continuing upward.

In terms of reported cases, of the 5,053 funding procurement plans submitted by buyers in their 20s this year, 48.4% cited gifts/inheritance, and 44.0% listed 'other borrowings.' This means that one in two buyers received a gift, and nearly half borrowed money from family or acquaintances to purchase a home. This trend shows that parental financial capability is increasingly becoming a de facto "entrance ticket" to the housing market.

Among buyers in their 30s, who accounted for the largest purchasing volume, dependence on loans is rising. Loans from financial institutions, the number one funding source for this group, accounted for 40.3% (19.0743 trillion won) this year—making it the only age group to exceed 40%. The loan ratio for buyers in their 30s has consistently increased from 36.5% in 2024 to 38.0% in 2025 and now 40.3%. The second largest source is proceeds from real estate sales (18.5%), followed by deposits (14.2%).

From the 40s and older, the main source of funds shifted. For buyers in their 40s, the number one source is proceeds from selling existing real estate (37.7%). Bank loans, which were the leading source for buyers in their 20s and 30s, dropped to second at 25.5%. Deposits (14.7%) were the third most significant source.

The trend continues with older age groups: more of their home purchase funds come from reducing debt and using existing assets such as property and cash. Among buyers in their 50s, proceeds from selling existing real estate accounted for the largest share at 43.0% (9.6442 trillion won). Deposits ranked second at 19.9%, while loans from financial institutions represented only 14.6% (3.2762 trillion won), about one-third the amount of real estate sale proceeds.

For those aged 60 and above, the share of funds coming from real estate sales was 42.3% in 2024, 49.2% in 2025, and rose to 51.9% this year. This means that over half of their home purchase funds were sourced from selling existing homes or land. Deposits (21.3%) and the transfer of lease deposits (7.3%) followed. Bank loans, previously the largest source among buyers in their 20s and 30s, fell to fourth place at just 7.2%.

A panoramic view of apartments in the Gangnam area as seen from the Lotte World Tower Sky Observatory in Songpa-gu, Seoul. Photo by Dongju Yoon

Such differences in assets by generation are leading to tighter borrowing conditions for buyers in their 20s and 30s who must rely more heavily on bank loans. The National Assembly Research Service analyzed that lending regulations affect households differently depending on the assets they hold.

In its November 2025 report, "The Main Contents and Tasks of the October 15 Housing Market Stabilization Measures," the National Assembly Research Service pointed out, "Households with sufficient assets are relatively less affected by lending regulations, but those with insufficient assets face limitations in purchasing homes."

The research service further stated, "While the average net assets of households in their 30s are 254.02 million won, buyers wishing to purchase an average-priced apartment in Seoul at 1.24 billion won, assuming a loan-to-value (LTV) ratio of 40%, would need their own capital of 744 million won." The report concluded, "Considering the average net assets of buyers in their 30s and the average deposit-to-price ratio for jeonse in Seoul, it remains difficult to cover the gap even if lease deposits are fully utilized."

This analysis is based on the examination of home purchase funding plans, which are official documents submitted by buyers to report how they secured their funds. For August contracts, the filing deadline—30 days after the contract date—had not yet passed, so only data up to the end of July, when most reports had been filed, was analyzed to ensure completeness.

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