{"content_id":"yjntkat4ck","slug":"seoul-villa-supply-decline-rental-costs","locale":"en","schema_type":"Article","category":"report","category_name":"Report","title":"Seoul Low-Rise Housing Supply Drop: Rents and How to Respond","summary":"The decline in Seoul's supply of low-rise housing is one factor reducing the choice of new rental homes. You should check what the supply statistics cover and whether they have been revised, along with jeonse guarantee criteria and the 2026 housing benefit requirements.","sponsorship_disclosure":null,"affiliate_disclosure":null,"commerce_disclosure":null,"author":{"name":"Injoys Editorial Team","url":"https://injoys.com/ko/about"},"key_points":["The 86.1% decline in low-rise housing completions in Seoul reported in March 2026 compares 2018 with 2025.","These completion figures include not only row houses and multi-unit homes but also multi-family homes.","For HUG guarantee assessments that use officially assessed property values, senior claims are also factored into the guarantee limit calculation.","The 2026 standard rent of 369,000 won per month for a one-person household in Seoul is not a fixed amount paid to every applicant.","When comparing jeonse and monthly rent, calculate the monthly cost, including loan interest and maintenance fees."],"content_markdown":"The decline in new villa supply in Seoul reduces the choice of affordable rental homes. This does not mean that existing villas have disappeared. If you are preparing to move, check the deposit return terms first. You can also review your monthly housing costs and whether you qualify for housing benefits.\n\nThe supply figures are 2025 results reported in March 2026, while the housing benefit information is based on 2026 standards.\n\n## How much has villa supply in Seoul declined?\n\nA March 2026 report showed that villa completions in Seoul had **fallen by 86.1%** compared with 2018. Seoul Shinmun cited statistics from the Ministry of Land, Infrastructure and Transport. The figures cover row houses, multi-unit houses, and multi-household houses. You can check the comparison figures in [the Seoul Shinmun report](https://m.seoul.co.kr/news/2026/03/15/20260315500092).\n\n| Comparison item | Figure cited in the report | Scope of interpretation |\n| --- | ---: | --- |\n| Seoul completions in 2018 | 35,006 homes | Total for row houses, multi-unit houses, and multi-household houses |\n| Seoul completions in 2025 | 4,858 homes | Total for the same housing types |\n| Difference between the two years | Decrease of 30,148 homes | Calculated from the figures above |\n| Rate of decline | 86.1% | 2025 compared with 2018 |\n\nThese figures do not represent the total stock of existing homes. They compare the number of newly completed homes in a year. It would therefore be wrong to interpret them as meaning that 86.1% of Seoul's villas have disappeared.\n\nThe figures available when the report was published should not be assumed to be the latest finalized figures, either. The Ministry of Land, Infrastructure and Transport published the final 2025 construction figures on September 30, 2026. The final figures for each housing type in Seoul need to be checked against those finalized tables. A list of the data is available under [Housing Construction Permits and Approvals on e-Nara Indicators](https://www.index.go.kr/unity/potal/main/EachDtlPageDetail.do?idx_cd=1229).\n\n## Villa supply statistics and their scope\n\nVilla statistics vary depending on the housing types included. “Villa” is often used as a general term for row houses and multi-unit houses. However, supply reports sometimes include multi-household houses as well.\n\n| Category | Meaning | What to check when comparing |\n| --- | --- | --- |\n| Row houses and multi-unit houses | Homes classified as communal housing | Whether only these two types were counted |\n| Multi-household houses | Homes classified as detached housing | Whether they were included in the villa total |\n| Permits and approvals | Construction permits or approvals issued | Whether these were distinguished from actual construction starts |\n| Construction starts | Projects where construction has begun | Whether expected completion dates were checked separately |\n| Completions | Projects where construction is finished and approval for use has been granted | Whether the figures are provisional or final |\n\nDirectly comparing rental statistics for row houses and multi-unit houses with the completion total above would mean comparing different scopes. A decline in construction starts also needs a reference year and region to be interpreted. Simply describing it as a certain percentage of a typical year leaves the basis for comparison unclear.\n\n## What factors are reducing villa supply?\n\nUncertainty over jeonse transactions and the burden of construction costs are factors that constrain supply. Seoul Shinmun cited the fallout from jeonse fraud and rising construction costs as background factors. However, a separate analysis is needed to determine how much each factor contributed to the decline.\n\n| Factor | How it could affect supply | Limits to interpretation |\n| --- | --- | --- |\n| Concerns about deposit returns | Weaker jeonse demand and delayed contracts | Not all villas carry the same risk |\n| Guarantee eligibility criteria | Limits on the deposit amount eligible for a guarantee | Varies with each home's value and claims against it |\n| Construction and financing costs | Higher project costs and lower expected profits | Varies with land costs and financing terms for each project |\n\nThese are economic mechanisms that could explain a decline in supply. No causal link has been established showing that a single guarantee criterion caused the entire decline. For construction cost increases, the type of index and comparison period must also be checked.\n\nThe number of jeonse fraud victims must also be distinguished from the number of people who lost their entire deposits. Recognized victim cases alone cannot be used to calculate the final scale of losses. Amounts recovered through guarantee payouts or distributions must also be examined.\n\n## What does 126% of the officially assessed value mean?\n\nThe 126% figure comes from calculations used in HUG guarantee screening based on officially assessed values. A housing valuation rate of 140% is applied to the officially assessed value. Multiplying this by a loan-to-value ratio of 90% gives 126%.\n\nThe combined amount of the jeonse deposit and senior claims must meet the screening criteria. Senior claims are claims repaid before the tenant's deposit. If there are mortgages or similar claims, the deposit amount eligible for a guarantee decreases.\n\n- Housing valuation: officially assessed value × 140%\n- Applying the loan-to-value ratio: calculated housing value × 90%\n- Calculating the deposit limit: subtract senior claims from the amount above\n\nThis ratio is not a legal ceiling that sets jeonse prices for all villas. It is part of the screening criteria for guarantee eligibility. Check the valuation sequence and other requirements in the [HUG Jeonse Deposit Return Guarantee product overview](https://www.khug.or.kr/hug/web/ig/dr/igdr000001.jsp).\n\n### Example calculation for an officially assessed value of 120 million won\n\nIf the officially assessed value is 120 million won, the calculated threshold is 151.2 million won. This example assumes that the officially assessed value is used and there are no senior claims. It does not represent an actual listing or approval result.\n\n| Calculation item | Amount |\n| --- | ---: |\n| Example officially assessed value | 120,000,000 won |\n| Officially assessed value × 140% | 168,000,000 won |\n| Amount above × 90% | 151,200,000 won |\n| Difference assuming an existing deposit of 180,000,000 won | 28,800,000 won |\n\nIf the landlord renews the lease with a lower deposit, they must raise the difference. Switching to monthly rent is an option the parties can consider. However, this calculation alone does not mean that a switch to monthly rent or an auction is inevitable.\n\n## How could this affect small apartments and monthly rentals?\n\nA decline in villa supply could increase demand for other rental housing. Demand may also shift as tenants try to avoid jeonse deposit risks. However, a separate transaction analysis is needed to establish the scale of that shift.\n\nApplication competition ratios for small apartments do not show how many tenants have moved. Applications measure demand to buy newly offered homes. The number of homes offered and their sale prices also affect competition ratios.\n\n| Trend to examine | Suitable data | What that data alone cannot tell you |\n| --- | --- | --- |\n| Increase in monthly rental contracts | Share of rental contracts in the same area and housing category | Increase in housing costs for individual households |\n| Rising rents | Rental price indices for the same housing type and contracts for similar properties | Housing cost burden for all tenants |\n| Shift in demand toward apartments | Analysis of moves, including previous places of residence | Number of people moving calculated solely from application competition ratios |\n| Reduced capacity to save | Household income and actual housing costs | Savings calculated solely from the share of monthly rental contracts |\n\nThe claim that 80% of Seoul villa transactions involve monthly rent also requires details about how the figures were compiled. First, check whether this is a share of rental transactions only. Whether semi-jeonse is included and the survey period must also be distinguished.\n\nA decline in supply alone cannot establish the future rate of rent increases. Income, interest rates, and local demand also play a role. There is also insufficient evidence to conclude that supply will recover in 2028 or later.\n\n## Comparing the actual costs of jeonse and monthly rent\n\nWhen comparing housing costs, include loan interest and maintenance fees, not just monthly rent. A lower deposit may reduce the amount you need to borrow. Conversely, higher monthly rent payments may leave you with less money each month.\n\n| Comparison item | Jeonse | Monthly rent with a deposit and semi-jeonse |\n| --- | --- | --- |\n| Money needed when signing the contract | Relatively large deposit | Varies with the deposit terms |\n| Monthly payments | Deposit loan interest, maintenance fees, and other costs | Monthly rent, loan interest, maintenance fees, and other costs |\n| Amount exposed to deposit return risk | Deposit paid | Deposit paid |\n| What to check for comparison | Guarantee eligibility and loan terms | Monthly rent, maintenance fees, and deposit return terms |\n\nYou can calculate your monthly burden by adding deposit loan interest and maintenance fees to monthly rent. Use the same cost items when comparing annual expenses. If you pay the entire deposit with your own funds, you can also consider the fact that the money will be tied up.\n\nFor example, if monthly income is 2.5 million won and housing costs are 1 million won, the burden is 40%. This is the result of dividing the two amounts. It does not represent the actual average for tenant households in Seoul or a forecast.\n\n## Who can receive housing benefits in 2026?\n\nHousing benefit eligibility is determined by a household's recognized income. Recognized income is the sum of assessed income and the income equivalent of assets. It is difficult to determine eligibility from salary alone.\n\nThe 2026 eligibility threshold is at most 48% of the standard median income. For a one-person household, the threshold is recognized monthly income of at most 1,230,834 won. Criteria by household size are available in the [MyHome housing benefit guide](https://m.myhome.go.kr/hws/portal/cont/selectHousingBenefitView.do).\n\n| 2026 standards for a one-person household | Amount |\n| --- | ---: |\n| Housing benefit eligibility threshold | Recognized monthly income of at most 1,230,834 won |\n| Standard rent in Seoul | 369,000 won per month |\n| Standard rent in Gyeonggi and Incheon | 300,000 won per month |\n| Standard rent in metropolitan cities, Sejong, and special-status cities outside the Seoul metropolitan area | 247,000 won per month |\n| Standard rent in other areas | 212,000 won per month |\n\nSeoul's **369,000 won per month** is the standard rent for a one-person household. The actual payment varies with rent and recognized income. The calculation method follows the [MyHome support guide for tenant households](https://www.myhome.go.kr/hws/portal/cont/selectRentalHouseholdSupView.do).\n\n### Example calculation for monthly rent of 450,000 won\n\nSubtracting a benefit of 369,000 won from monthly rent of 450,000 won leaves 81,000 won. This calculation assumes that the conditions for receiving the full benefit are met. Maintenance fees and loan interest are not included in this amount.\n\nIf recognized income exceeds the livelihood benefit eligibility threshold, a household contribution is deducted. Actual rent also includes an amount calculated by converting the deposit into monthly rent. The benefit amount therefore should not be determined from monthly rent alone.\n\n## What to check before moving or renewing a lease\n\nCheck both the property's guarantee conditions and your monthly spending. Regional supply statistics alone are not enough to assess an individual contract. Gathering information in the following order can help you compare on a consistent basis.\n\n1. Check the building register for the actual housing type and any indication of building violations.\n2. Check the property register for the owner and rights such as mortgages.\n3. Ask the guarantee provider about the property's guarantee eligibility requirements.\n4. Calculate the monthly burden for each property by adding rent, loan interest, and maintenance fees.\n5. Consult your community service center or the housing benefit call center about whether you qualify for housing benefits.\n\nHUG guarantees also have separate requirements, such as registering your move-in and obtaining a fixed date on the lease. Simply checking eligibility before signing a contract does not complete enrollment. Check the guarantee provider's guidance on when to apply and which documents are required.\n\nHousing benefit consultations are available at 1600-0777. It helps to organize information about your income, assets, and rental terms before calling. The number is listed in the [LH housing benefit guide](https://lh.or.kr/menu.es?mid=a10401050100).","content_html":"\u003cp\u003eThe decline in new villa supply in Seoul reduces the choice of affordable rental homes. This does not mean that existing villas have disappeared. If you are preparing to move, check the deposit return terms first. You can also review your monthly housing costs and whether you qualify for housing benefits.\u003c/p\u003e\n\u003cp\u003eThe supply figures are 2025 results reported in March 2026, while the housing benefit information is based on 2026 standards.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-much-has-villa-supply-in-seoul-declined\" class=\"anchor\" id=\"how-much-has-villa-supply-in-seoul-declined\"\u003e\u003c/a\u003eHow much has villa supply in Seoul declined?\u003c/h2\u003e\n\u003cp\u003eA March 2026 report showed that villa completions in Seoul had \u003cstrong\u003efallen by 86.1%\u003c/strong\u003e compared with 2018. Seoul Shinmun cited statistics from the Ministry of Land, Infrastructure and Transport. The figures cover row houses, multi-unit houses, and multi-household houses. You can check the comparison figures in \u003ca href=\"https://m.seoul.co.kr/news/2026/03/15/20260315500092\"\u003ethe Seoul Shinmun report\u003c/a\u003e.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eComparison item\u003c/th\u003e\n\u003cth\u003eFigure cited in the report\u003c/th\u003e\n\u003cth\u003eScope of interpretation\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eSeoul completions in 2018\u003c/td\u003e\n\u003ctd data-label=\"Figure cited in the report\"\u003e35,006 homes\u003c/td\u003e\n\u003ctd data-label=\"Scope of interpretation\"\u003eTotal for row houses, multi-unit houses, and multi-household houses\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eSeoul completions in 2025\u003c/td\u003e\n\u003ctd data-label=\"Figure cited in the report\"\u003e4,858 homes\u003c/td\u003e\n\u003ctd data-label=\"Scope of interpretation\"\u003eTotal for the same housing types\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eDifference between the two years\u003c/td\u003e\n\u003ctd data-label=\"Figure cited in the report\"\u003eDecrease of 30,148 homes\u003c/td\u003e\n\u003ctd data-label=\"Scope of interpretation\"\u003eCalculated from the figures above\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eRate of decline\u003c/td\u003e\n\u003ctd data-label=\"Figure cited in the report\"\u003e86.1%\u003c/td\u003e\n\u003ctd data-label=\"Scope of interpretation\"\u003e2025 compared with 2018\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThese figures do not represent the total stock of existing homes. They compare the number of newly completed homes in a year. It would therefore be wrong to interpret them as meaning that 86.1% of Seoul's villas have disappeared.\u003c/p\u003e\n\u003cp\u003eThe figures available when the report was published should not be assumed to be the latest finalized figures, either. The Ministry of Land, Infrastructure and Transport published the final 2025 construction figures on September 30, 2026. The final figures for each housing type in Seoul need to be checked against those finalized tables. A list of the data is available under \u003ca href=\"https://www.index.go.kr/unity/potal/main/EachDtlPageDetail.do?idx_cd=1229\"\u003eHousing Construction Permits and Approvals on e-Nara Indicators\u003c/a\u003e.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#villa-supply-statistics-and-their-scope\" class=\"anchor\" id=\"villa-supply-statistics-and-their-scope\"\u003e\u003c/a\u003eVilla supply statistics and their scope\u003c/h2\u003e\n\u003cp\u003eVilla statistics vary depending on the housing types included. “Villa” is often used as a general term for row houses and multi-unit houses. However, supply reports sometimes include multi-household houses as well.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCategory\u003c/th\u003e\n\u003cth\u003eMeaning\u003c/th\u003e\n\u003cth\u003eWhat to check when comparing\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eRow houses and multi-unit houses\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eHomes classified as communal housing\u003c/td\u003e\n\u003ctd data-label=\"What to check when comparing\"\u003eWhether only these two types were counted\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eMulti-household houses\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eHomes classified as detached housing\u003c/td\u003e\n\u003ctd data-label=\"What to check when comparing\"\u003eWhether they were included in the villa total\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003ePermits and approvals\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eConstruction permits or approvals issued\u003c/td\u003e\n\u003ctd data-label=\"What to check when comparing\"\u003eWhether these were distinguished from actual construction starts\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eConstruction starts\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eProjects where construction has begun\u003c/td\u003e\n\u003ctd data-label=\"What to check when comparing\"\u003eWhether expected completion dates were checked separately\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eCompletions\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eProjects where construction is finished and approval for use has been granted\u003c/td\u003e\n\u003ctd data-label=\"What to check when comparing\"\u003eWhether the figures are provisional or final\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eDirectly comparing rental statistics for row houses and multi-unit houses with the completion total above would mean comparing different scopes. A decline in construction starts also needs a reference year and region to be interpreted. Simply describing it as a certain percentage of a typical year leaves the basis for comparison unclear.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-factors-are-reducing-villa-supply\" class=\"anchor\" id=\"what-factors-are-reducing-villa-supply\"\u003e\u003c/a\u003eWhat factors are reducing villa supply?\u003c/h2\u003e\n\u003cp\u003eUncertainty over jeonse transactions and the burden of construction costs are factors that constrain supply. Seoul Shinmun cited the fallout from jeonse fraud and rising construction costs as background factors. However, a separate analysis is needed to determine how much each factor contributed to the decline.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eFactor\u003c/th\u003e\n\u003cth\u003eHow it could affect supply\u003c/th\u003e\n\u003cth\u003eLimits to interpretation\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Factor\"\u003eConcerns about deposit returns\u003c/td\u003e\n\u003ctd data-label=\"How it could affect supply\"\u003eWeaker jeonse demand and delayed contracts\u003c/td\u003e\n\u003ctd data-label=\"Limits to interpretation\"\u003eNot all villas carry the same risk\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Factor\"\u003eGuarantee eligibility criteria\u003c/td\u003e\n\u003ctd data-label=\"How it could affect supply\"\u003eLimits on the deposit amount eligible for a guarantee\u003c/td\u003e\n\u003ctd data-label=\"Limits to interpretation\"\u003eVaries with each home's value and claims against it\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Factor\"\u003eConstruction and financing costs\u003c/td\u003e\n\u003ctd data-label=\"How it could affect supply\"\u003eHigher project costs and lower expected profits\u003c/td\u003e\n\u003ctd data-label=\"Limits to interpretation\"\u003eVaries with land costs and financing terms for each project\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThese are economic mechanisms that could explain a decline in supply. No causal link has been established showing that a single guarantee criterion caused the entire decline. For construction cost increases, the type of index and comparison period must also be checked.\u003c/p\u003e\n\u003cp\u003eThe number of jeonse fraud victims must also be distinguished from the number of people who lost their entire deposits. Recognized victim cases alone cannot be used to calculate the final scale of losses. Amounts recovered through guarantee payouts or distributions must also be examined.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-does-126-of-the-officially-assessed-value-mean\" class=\"anchor\" id=\"what-does-126-of-the-officially-assessed-value-mean\"\u003e\u003c/a\u003eWhat does 126% of the officially assessed value mean?\u003c/h2\u003e\n\u003cp\u003eThe 126% figure comes from calculations used in HUG guarantee screening based on officially assessed values. A housing valuation rate of 140% is applied to the officially assessed value. Multiplying this by a loan-to-value ratio of 90% gives 126%.\u003c/p\u003e\n\u003cp\u003eThe combined amount of the jeonse deposit and senior claims must meet the screening criteria. Senior claims are claims repaid before the tenant's deposit. If there are mortgages or similar claims, the deposit amount eligible for a guarantee decreases.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eHousing valuation: officially assessed value × 140%\u003c/li\u003e\n\u003cli\u003eApplying the loan-to-value ratio: calculated housing value × 90%\u003c/li\u003e\n\u003cli\u003eCalculating the deposit limit: subtract senior claims from the amount above\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eThis ratio is not a legal ceiling that sets jeonse prices for all villas. It is part of the screening criteria for guarantee eligibility. Check the valuation sequence and other requirements in the \u003ca href=\"https://www.khug.or.kr/hug/web/ig/dr/igdr000001.jsp\"\u003eHUG Jeonse Deposit Return Guarantee product overview\u003c/a\u003e.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#example-calculation-for-an-officially-assessed-value-of-120-million-won\" class=\"anchor\" id=\"example-calculation-for-an-officially-assessed-value-of-120-million-won\"\u003e\u003c/a\u003eExample calculation for an officially assessed value of 120 million won\u003c/h3\u003e\n\u003cp\u003eIf the officially assessed value is 120 million won, the calculated threshold is 151.2 million won. This example assumes that the officially assessed value is used and there are no senior claims. It does not represent an actual listing or approval result.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCalculation item\u003c/th\u003e\n\u003cth\u003eAmount\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation item\"\u003eExample officially assessed value\u003c/td\u003e\n\u003ctd data-label=\"Amount\"\u003e120,000,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation item\"\u003eOfficially assessed value × 140%\u003c/td\u003e\n\u003ctd data-label=\"Amount\"\u003e168,000,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation item\"\u003eAmount above × 90%\u003c/td\u003e\n\u003ctd data-label=\"Amount\"\u003e151,200,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation item\"\u003eDifference assuming an existing deposit of 180,000,000 won\u003c/td\u003e\n\u003ctd data-label=\"Amount\"\u003e28,800,000 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eIf the landlord renews the lease with a lower deposit, they must raise the difference. Switching to monthly rent is an option the parties can consider. However, this calculation alone does not mean that a switch to monthly rent or an auction is inevitable.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-could-this-affect-small-apartments-and-monthly-rentals\" class=\"anchor\" id=\"how-could-this-affect-small-apartments-and-monthly-rentals\"\u003e\u003c/a\u003eHow could this affect small apartments and monthly rentals?\u003c/h2\u003e\n\u003cp\u003eA decline in villa supply could increase demand for other rental housing. Demand may also shift as tenants try to avoid jeonse deposit risks. However, a separate transaction analysis is needed to establish the scale of that shift.\u003c/p\u003e\n\u003cp\u003eApplication competition ratios for small apartments do not show how many tenants have moved. Applications measure demand to buy newly offered homes. The number of homes offered and their sale prices also affect competition ratios.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eTrend to examine\u003c/th\u003e\n\u003cth\u003eSuitable data\u003c/th\u003e\n\u003cth\u003eWhat that data alone cannot tell you\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Trend to examine\"\u003eIncrease in monthly rental contracts\u003c/td\u003e\n\u003ctd data-label=\"Suitable data\"\u003eShare of rental contracts in the same area and housing category\u003c/td\u003e\n\u003ctd data-label=\"What that data alone cannot tell you\"\u003eIncrease in housing costs for individual households\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Trend to examine\"\u003eRising rents\u003c/td\u003e\n\u003ctd data-label=\"Suitable data\"\u003eRental price indices for the same housing type and contracts for similar properties\u003c/td\u003e\n\u003ctd data-label=\"What that data alone cannot tell you\"\u003eHousing cost burden for all tenants\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Trend to examine\"\u003eShift in demand toward apartments\u003c/td\u003e\n\u003ctd data-label=\"Suitable data\"\u003eAnalysis of moves, including previous places of residence\u003c/td\u003e\n\u003ctd data-label=\"What that data alone cannot tell you\"\u003eNumber of people moving calculated solely from application competition ratios\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Trend to examine\"\u003eReduced capacity to save\u003c/td\u003e\n\u003ctd data-label=\"Suitable data\"\u003eHousehold income and actual housing costs\u003c/td\u003e\n\u003ctd data-label=\"What that data alone cannot tell you\"\u003eSavings calculated solely from the share of monthly rental contracts\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThe claim that 80% of Seoul villa transactions involve monthly rent also requires details about how the figures were compiled. First, check whether this is a share of rental transactions only. Whether semi-jeonse is included and the survey period must also be distinguished.\u003c/p\u003e\n\u003cp\u003eA decline in supply alone cannot establish the future rate of rent increases. Income, interest rates, and local demand also play a role. There is also insufficient evidence to conclude that supply will recover in 2028 or later.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#comparing-the-actual-costs-of-jeonse-and-monthly-rent\" class=\"anchor\" id=\"comparing-the-actual-costs-of-jeonse-and-monthly-rent\"\u003e\u003c/a\u003eComparing the actual costs of jeonse and monthly rent\u003c/h2\u003e\n\u003cp\u003eWhen comparing housing costs, include loan interest and maintenance fees, not just monthly rent. A lower deposit may reduce the amount you need to borrow. Conversely, higher monthly rent payments may leave you with less money each month.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eComparison item\u003c/th\u003e\n\u003cth\u003eJeonse\u003c/th\u003e\n\u003cth\u003eMonthly rent with a deposit and semi-jeonse\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eMoney needed when signing the contract\u003c/td\u003e\n\u003ctd data-label=\"Jeonse\"\u003eRelatively large deposit\u003c/td\u003e\n\u003ctd data-label=\"Monthly rent with a deposit and semi-jeonse\"\u003eVaries with the deposit terms\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eMonthly payments\u003c/td\u003e\n\u003ctd data-label=\"Jeonse\"\u003eDeposit loan interest, maintenance fees, and other costs\u003c/td\u003e\n\u003ctd data-label=\"Monthly rent with a deposit and semi-jeonse\"\u003eMonthly rent, loan interest, maintenance fees, and other costs\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eAmount exposed to deposit return risk\u003c/td\u003e\n\u003ctd data-label=\"Jeonse\"\u003eDeposit paid\u003c/td\u003e\n\u003ctd data-label=\"Monthly rent with a deposit and semi-jeonse\"\u003eDeposit paid\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Comparison item\"\u003eWhat to check for comparison\u003c/td\u003e\n\u003ctd data-label=\"Jeonse\"\u003eGuarantee eligibility and loan terms\u003c/td\u003e\n\u003ctd data-label=\"Monthly rent with a deposit and semi-jeonse\"\u003eMonthly rent, maintenance fees, and deposit return terms\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eYou can calculate your monthly burden by adding deposit loan interest and maintenance fees to monthly rent. Use the same cost items when comparing annual expenses. If you pay the entire deposit with your own funds, you can also consider the fact that the money will be tied up.\u003c/p\u003e\n\u003cp\u003eFor example, if monthly income is 2.5 million won and housing costs are 1 million won, the burden is 40%. This is the result of dividing the two amounts. It does not represent the actual average for tenant households in Seoul or a forecast.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#who-can-receive-housing-benefits-in-2026\" class=\"anchor\" id=\"who-can-receive-housing-benefits-in-2026\"\u003e\u003c/a\u003eWho can receive housing benefits in 2026?\u003c/h2\u003e\n\u003cp\u003eHousing benefit eligibility is determined by a household's recognized income. Recognized income is the sum of assessed income and the income equivalent of assets. It is difficult to determine eligibility from salary alone.\u003c/p\u003e\n\u003cp\u003eThe 2026 eligibility threshold is at most 48% of the standard median income. For a one-person household, the threshold is recognized monthly income of at most 1,230,834 won. Criteria by household size are available in the \u003ca href=\"https://m.myhome.go.kr/hws/portal/cont/selectHousingBenefitView.do\"\u003eMyHome housing benefit guide\u003c/a\u003e.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003e2026 standards for a one-person household\u003c/th\u003e\n\u003cth\u003eAmount\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"2026 standards for a one-person household\"\u003eHousing benefit eligibility threshold\u003c/td\u003e\n\u003ctd data-label=\"Amount\"\u003eRecognized monthly income of at most 1,230,834 won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"2026 standards for a one-person household\"\u003eStandard rent in Seoul\u003c/td\u003e\n\u003ctd data-label=\"Amount\"\u003e369,000 won per month\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"2026 standards for a one-person household\"\u003eStandard rent in Gyeonggi and Incheon\u003c/td\u003e\n\u003ctd data-label=\"Amount\"\u003e300,000 won per month\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"2026 standards for a one-person household\"\u003eStandard rent in metropolitan cities, Sejong, and special-status cities outside the Seoul metropolitan area\u003c/td\u003e\n\u003ctd data-label=\"Amount\"\u003e247,000 won per month\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"2026 standards for a one-person household\"\u003eStandard rent in other areas\u003c/td\u003e\n\u003ctd data-label=\"Amount\"\u003e212,000 won per month\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eSeoul's \u003cstrong\u003e369,000 won per month\u003c/strong\u003e is the standard rent for a one-person household. The actual payment varies with rent and recognized income. The calculation method follows the \u003ca href=\"https://www.myhome.go.kr/hws/portal/cont/selectRentalHouseholdSupView.do\"\u003eMyHome support guide for tenant households\u003c/a\u003e.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#example-calculation-for-monthly-rent-of-450000-won\" class=\"anchor\" id=\"example-calculation-for-monthly-rent-of-450000-won\"\u003e\u003c/a\u003eExample calculation for monthly rent of 450,000 won\u003c/h3\u003e\n\u003cp\u003eSubtracting a benefit of 369,000 won from monthly rent of 450,000 won leaves 81,000 won. This calculation assumes that the conditions for receiving the full benefit are met. Maintenance fees and loan interest are not included in this amount.\u003c/p\u003e\n\u003cp\u003eIf recognized income exceeds the livelihood benefit eligibility threshold, a household contribution is deducted. Actual rent also includes an amount calculated by converting the deposit into monthly rent. The benefit amount therefore should not be determined from monthly rent alone.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-to-check-before-moving-or-renewing-a-lease\" class=\"anchor\" id=\"what-to-check-before-moving-or-renewing-a-lease\"\u003e\u003c/a\u003eWhat to check before moving or renewing a lease\u003c/h2\u003e\n\u003cp\u003eCheck both the property's guarantee conditions and your monthly spending. Regional supply statistics alone are not enough to assess an individual contract. Gathering information in the following order can help you compare on a consistent basis.\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003eCheck the building register for the actual housing type and any indication of building violations.\u003c/li\u003e\n\u003cli\u003eCheck the property register for the owner and rights such as mortgages.\u003c/li\u003e\n\u003cli\u003eAsk the guarantee provider about the property's guarantee eligibility requirements.\u003c/li\u003e\n\u003cli\u003eCalculate the monthly burden for each property by adding rent, loan interest, and maintenance fees.\u003c/li\u003e\n\u003cli\u003eConsult your community service center or the housing benefit call center about whether you qualify for housing benefits.\u003c/li\u003e\n\u003c/ol\u003e\n\u003cp\u003eHUG guarantees also have separate requirements, such as registering your move-in and obtaining a fixed date on the lease. Simply checking eligibility before signing a contract does not complete enrollment. Check the guarantee provider's guidance on when to apply and which documents are required.\u003c/p\u003e\n\u003cp\u003eHousing benefit consultations are available at 1600-0777. It helps to organize information about your income, assets, and rental terms before calling. The number is listed in the \u003ca href=\"https://lh.or.kr/menu.es?mid=a10401050100\"\u003eLH housing benefit guide\u003c/a\u003e.\u003c/p\u003e\n","tags":["Housing Supply","Monthly rent","Real estate policy","Housing costs","Jeonse and rent","Jeonse Deposit Guarantee"],"faqs":[{"question":"Does saying that villa supply fell by 86.1% mean that existing homes have disappeared?","answer":"No. This figure comes from a March 2026 report comparing newly completed housing units in Seoul in 2018 and 2025. It does not represent the rate of decline in the total number of existing villas."},{"question":"What types of housing are included in the 4,858 villa units completed in Seoul?","answer":"The report includes row houses, multi-family housing, and multi-household housing. When comparing these figures with transaction statistics covering only row houses and multi-family housing, the scope must be consistent."},{"question":"Can move-in dates be determined from housing start figures?","answer":"A housing start means construction has begun. Construction schedules and possible delays vary by project, so move-in dates must be checked separately."},{"question":"Can I get a HUG guarantee if it is at most 126% of the officially assessed property value?","answer":"That ratio alone does not determine eligibility. Other requirements, including senior claims and the status of property rights, are also reviewed. You should first check which method applies to calculating the property's value."},{"question":"What is 126% of an officially assessed property value of 120,000,000 won?","answer":"It is 151,200,000 won. Senior claims and other factors must also be taken into account when determining the deposit limit."},{"question":"Does a decline in villa supply lead to higher apartment prices?","answer":"It can cause demand to shift to other types of housing. However, a decline in supply alone cannot determine the direction of apartment prices or their rate of increase."},{"question":"Does a higher share of monthly rent contracts increase the burden on all tenants?","answer":"The share of contracts alone cannot determine the burden on individual households. Actual expenses, including interest on rental deposit loans and maintenance fees, must be compared."},{"question":"Do single-person households in Seoul receive 369,000 won in housing benefits in 2026?","answer":"The monthly amount of 369,000 won is the reference rent. The actual payment varies depending on recognized income, rent, and other factors."},{"question":"Is the income standard for housing benefits the same as a monthly salary?","answer":"It is not the same as a monthly salary. It is based on recognized income, which is assessed income plus the income-equivalent value of assets."},{"question":"How much is left to pay if I receive 369,000 won in housing benefits toward monthly rent of 450,000 won?","answer":"If you receive the full benefit, the remaining monthly rent is 81,000 won. Maintenance fees and loan interest must be calculated separately."}],"sources":[{"url":"https://m.seoul.co.kr/news/2026/03/15/20260315500092","title":"Seoul Shinmun, Sharp Drop in Seoul's Low-Rise Multifamily Housing Supply, March 15, 2026","type":"data_point"},{"url":"https://www.index.go.kr/unity/potal/main/EachDtlPageDetail.do?idx_cd=1229","title":"e-Nara Indicators, Housing Construction Permit and Approval Statistics and Housing Statistics Policy Materials","type":"source"},{"url":"https://www.khug.or.kr/hug/web/ig/dr/igdr000001.jsp","title":"HUG Korea Housing \u0026 Urban Guarantee Corporation, Jeonse Deposit Return Guarantee Product Overview","type":"source"},{"url":"https://www.khug.or.kr/hug/web/cs/el/csel000182.jsp?hmpg_cvap_dcd=04\u0026hmpg_sno=82788","title":"HUG Korea Housing \u0026 Urban Guarantee Corporation, Response to an Inquiry on Housing Price Valuation Criteria for the Jeonse Deposit Return Guarantee","type":"source"},{"url":"https://m.myhome.go.kr/hws/portal/cont/selectHousingBenefitView.do","title":"MyHome Portal, 2026 Housing Benefits Overview and Eligibility Criteria","type":"source"},{"url":"https://www.myhome.go.kr/hws/portal/cont/selectRentalHouseholdSupView.do","title":"MyHome Portal, 2026 Housing Benefits Support Criteria for Renter Households","type":"data_point"},{"url":"https://lh.or.kr/menu.es?mid=a10401050100","title":"Korea Land \u0026 Housing Corporation, Housing Benefits Support and Counseling Information","type":"source"}],"images":[{"id":2130,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MzI3NDMsInB1ciI6ImJsb2JfaWQifX0=--68fc24691f9168a5fdc7bdab68bb51efd357660a/ai-d94d6546.webp","is_representative":true,"generation_method":"ai_photo","license":"ai_generated","mime_type":"image/webp","width":1536,"height":1024,"translations":{"ko":{"alt":"작은 임대주택 내부를 살펴보는 남성과 주방 옆에서 서류를 들고 안내하는 중개인","caption":"서울 빌라 공급 감소는 신규 임대주택의 선택지를 줄이는 요인입니다.","description":null},"en":{"alt":"A man inspects a small rental apartment while an agent holding documents gestures beside the kitchenette.","caption":"Declining supply in Seoul’s low-rise housing sector limits new rental options.","description":null},"ja":{"alt":"小さな賃貸住宅の室内を見渡す男性と、キッチンの横で書類を持って案内する仲介担当者","caption":"ソウルの低層集合住宅の供給減少は、新たな賃貸住宅の選択肢を狭める要因です。","description":null},"es":{"alt":"Un hombre examina un pequeño piso de alquiler mientras una agente con documentos lo orienta junto a la cocina.","caption":"La menor oferta de viviendas en edificios bajos de Seúl reduce las nuevas opciones de alquiler.","description":null},"id":{"alt":"Seorang pria meninjau apartemen sewa kecil, sementara agen membawa dokumen dan memberi penjelasan di dekat dapur.","caption":"Penurunan pasokan hunian di bangunan bertingkat rendah di Seoul membatasi pilihan hunian sewa baru.","description":null},"pt":{"alt":"Um homem examina um pequeno apartamento para alugar enquanto uma corretora com documentos gesticula junto à cozinha.","caption":"A queda na oferta de moradias em prédios baixos de Seul reduz as novas opções de aluguel.","description":null},"zh-hant":{"alt":"一名男子查看小型出租住宅，仲介手持文件在小廚房旁介紹室內空間","caption":"首爾低層集合住宅供給減少，是新出租住宅選擇縮減的因素。","description":null},"de":{"alt":"Ein Mann besichtigt eine kleine Mietwohnung, während eine Maklerin mit Unterlagen neben der Küchenzeile gestikuliert.","caption":"Das sinkende Angebot an Wohnungen in niedrigen Mehrfamilienhäusern in Seoul schränkt neue Mietoptionen ein.","description":null}}},{"id":2131,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MzI3NDksInB1ciI6ImJsb2JfaWQifX0=--adbe7441145ff040723c8b9b19baaef11a1c1961/ai-79452c3e.webp","is_representative":false,"generation_method":"ai_semi","license":"ai_generated","mime_type":"image/webp","width":1536,"height":1024,"translations":{"ko":{"alt":"집 안 식탁에 서류를 놓고 휴대전화로 통화하는 중년 여성","caption":"2026년 주거급여를 신청하려면 수급 조건을 확인해야 합니다.","description":null},"en":{"alt":"A middle-aged woman talking on a mobile phone at her dining table with paperwork in front of her","caption":"Eligibility requirements must be checked when applying for 2026 housing benefits.","description":null},"ja":{"alt":"自宅の食卓に書類を置き、携帯電話で話す中年の女性","caption":"2026年の住居給付を申請する際は、受給条件の確認が必要です。","description":null},"es":{"alt":"Una mujer de mediana edad habla por móvil en la mesa del comedor, con documentos delante","caption":"Para solicitar la ayuda de vivienda de 2026, es necesario comprobar los requisitos.","description":null},"id":{"alt":"Perempuan paruh baya berbicara melalui ponsel di meja makan dengan dokumen di hadapannya","caption":"Persyaratan penerima perlu diperiksa saat mengajukan bantuan perumahan tahun 2026.","description":null},"pt":{"alt":"Uma mulher de meia-idade fala ao celular à mesa de jantar, com documentos à sua frente","caption":"É necessário verificar os requisitos para solicitar o auxílio-moradia de 2026.","description":null},"zh-hant":{"alt":"一名中年女子坐在家中餐桌旁講手機，面前放著文件","caption":"申請2026年住宅補助前，須確認申領資格。","description":null},"de":{"alt":"Eine Frau mittleren Alters telefoniert am Esstisch, vor ihr liegen Unterlagen","caption":"Für die Wohnbeihilfe 2026 müssen die Anspruchsvoraussetzungen geprüft werden.","description":null}}}],"published_at":"2026-10-25T12:24:42+09:00","updated_at":"2026-10-25T12:24:42+09:00","license":"cc_by","translation_status":"reviewed","available_locales":["ko","en","ja","es"],"data_locales":["ko","en","ja","es","id","pt","zh-hant","de"],"url":"https://injoys.com/en/articles/seoul-villa-supply-decline-rental-costs"}