Supply shortages and policy lags turn Seoul housing into generational barrier
Seoul is approaching 2026 with an unsettling contradiction. Home prices in the capital are projected to rise 4.2 percent next year, while “jeonse” rents climb an even faster 4.7 percent. This is unfolding as the national economy is expected to grow at barely half that pace.
The disconnect is already visible in the data. The Bank of Korea’s housing market risk index for Seoul has climbed to 0.90, the highest level since the index was introduced in 2018.
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