Government Plans to Provide 1.19 Million Public Housing Units by 2030

The South Korean government plans to supply 1.19 million public housing units by 2030, increasing the stock of long-term public rental housing to over 2.5 million units, which will represent 10% of the total housing supply. The initiative aims to enhance support for various life stages, including youth, newlyweds, and seniors, while introducing a new 'universal public rental' model accessible to the middle class.

On September 21, the Ministry of Land, Infrastructure and Transport announced the 'Housing Stability Plan for Robust and Comprehensive Housing Welfare.' The government aims to supply approximately 240,000 public housing units annually over the next five years, with 77% of these units, or 920,000, concentrated in the metropolitan area, which has high housing demand. The total of 1.19 million units will account for about 13.6% of the 8.717 million rental households as of 2024.

From the fourth quarter of this year until the end of next year, around 150,000 public housing units are expected to be available for occupancy nationwide, with approximately 100,000 units in the metropolitan area.

The public rental units will include 350,000 constructed rental units on public land, 310,000 rapid supply units in urban areas, and 230,000 leasehold rental units utilizing existing private housing. This initiative aims to increase the stock of long-term public rental housing from 1.931 million units in 2024 to over 2.5 million units by 2030.

To assist first-time homebuyers, the government will also supply 240,000 public sale units, primarily in new towns, with 210,000 of these units located in the metropolitan area. New public sale models will be introduced to reduce initial financial burdens, including equity accumulation and profit-sharing options.

The government will introduce a 'universal public rental' model, expanding eligibility beyond vulnerable groups. This initiative aims to allow diverse demographics to reside in quality housing at affordable rents in desirable locations.

By 2030, the government plans to start construction on 175,000 units of universal public rental housing in high-demand areas, with an additional 18,000 units through purchase. Efforts will also be made to improve the quality of existing public rental housing by increasing the size of units and enhancing structural and finishing materials.

New public rental units will feature larger layouts and floor structures designed to reduce noise between floors. Additionally, expandable layouts will be introduced for single-person households. The government will also pursue reconstruction and remodeling of aging public rental units and connect them with welfare services such as entrepreneurship, childcare, and caregiving.

Support for low-income households will be expanded, including increasing the scope of housing benefits to cover common management fees, which are currently limited to rent and housing repairs. Programs will also be enhanced to assist residents of goshiwons and small rooms in transitioning to public housing.

Housing support will be expanded based on life stages. The government plans to supply 243,000 public housing units for unmarried youth and will relax income and age criteria for youth rent support. The support period for low-income youth will be extended from 24 months to 48 months.

The income threshold for the Youth Housing Dream Savings Account will be raised from 50 million won to 70 million won. The supply of happy dormitories, shared youth housing, and newly purchased rental units will also be increased.

For newlywed and parenting households, 328,000 public housing units will be provided. The income requirements for newlyweds applying for public rental housing will be relaxed, allowing for one renewal even if they exceed income and asset limits due to marriage. Policy loans such as the stepping stone and support loans will be accessible if either spouse meets the general income criteria.

Additionally, 54,000 public housing units will be supplied for senior households. The government will expand housing types that combine living and care services, including senior welfare housing and private rental 'silver stay' options, as well as large-scale 'retirement villages.'

The application process for public rental housing will also be significantly streamlined. The Ministry of Land, Infrastructure and Transport and local public corporations will integrate their recruitment announcements and eligibility verification processes into a single waiting list system, reducing the selection period from 150 days to 40 days. A feature will be introduced to recommend rental housing that matches the characteristics and conditions of applicants.

Efforts will be made to centralize consultation and support services through regional housing welfare centers, with plans to expand and mandate the establishment of these centers.

Kim I-tak, the First Vice Minister of Land, Infrastructure and Transport, stated, "We will supply more good homes and provide more comprehensive support to ensure that all citizens, regardless of income, age, or residence, can experience housing stability."