Experts have suggested that in order to stabilize the rental market, it is necessary to reconsider regulations that restrict existing homes from entering the rental market, alongside increasing new housing supply. They argue that regulations on multiple homeowners and non-resident homeowners, as well as the expansion of land transaction permission zones, could suppress rental housing supply and hinder residential mobility, thereby increasing upward pressure on rental prices.
Lee Chang-moo, a professor at Hanyang University and chief architect of Seoul, made these remarks during a keynote address on "Strengthening Sales Market Regulations and Rental Market Instability" at the 2026 Seoul Housing Forum held at the Korea Press Center on October 7. The forum was organized to diagnose the current state of the rental market and explore stabilization measures.
Professor Lee noted that the instability in the rental market cannot be solely attributed to a physical shortage of housing supply. He explained that both multiple homeowners and non-resident homeowners, who rent out their owned homes while living elsewhere, play a significant role in rental supply, and thus the impact of regulations on these groups should be examined.
He stated, "Non-resident homeowners play an undeniable role as rental housing suppliers." He warned that regulations based on the number of homes owned or residency status could lead to a reduction in the rental housing they provide.
Lee also highlighted the close connection between the sales and rental markets in South Korea. He explained that the jeonse deposit serves as a means for landlords to finance home purchases while also being a source of housing funds that tenants must secure through jeonse loans. Therefore, regulations in the sales market can affect landlords' financing and tenants' housing choices.
The expansion of land transaction permission zones was also identified as a factor contributing to rental market instability. Lee argued that the obligation to reside in purchased homes makes it difficult to rent them out, which could reduce the availability of rental properties and restrict tenant mobility.
He pointed out, "Since the designation of land transaction permission zones, we have seen a serious surge in monthly rents, which is significantly suppressing normal residential mobility in the market, and this is the biggest problem."
He believes that if residential mobility is restricted, the effects of housing supply on the market could also be limited. A chain of movement is necessary, where new apartment residents vacate existing homes for other households to move in, but if transactions and rental supply are suppressed, this connection could weaken.
In light of this, he emphasized the need to expand not only the supply of apartments from redevelopment projects but also non-apartment housing. He stated, "To expand the currently insufficient non-apartment supply, the most important thing is to ease regulations on multiple homeowners," and called for a phased review of regulations on non-resident homeowners, multiple homeowners, registered rental business operators, and the designation of land transaction permission zones.
Discussions also included improving the private rental supply system. Lee Sang-young, a professor at Myongji University, presented activation measures based on domestic and international examples of corporate private rentals. Jo Gang-tae, CEO of MGRV, shared insights on the challenges faced in meeting the growing rental demand with the current supply system based on his experience in rental housing supply and operation.
There was also a proposal to strengthen the 'housing ladder' function of public rentals. Kim Jun-hyung, a professor at Myongji University, evaluated that long-term leases have played a role in providing housing security with low rents and emphasized the need to support tenants in asset accumulation and transition to the next stage of housing.
Kim stated, "The goal should not just be to enter long-term leases, but to combine them with other asset projects."
* This article has been translated by AI.
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