South Korea's Vacant Rental Homes Double in Five Years; Focus Needed on Quality, Not Just Quantity

South Korea is grappling with a significant increase in vacant public rental housing, with the number of unoccupied units managed by the Korea Land and Housing Corporation (LH) more than doubling in five years. As of June, there were 8,300 vacant homes, up from 4,300 at the end of 2021. In the Seoul metropolitan area alone, vacant units rose by nearly 50% to 2,900 in the past year.

This surge in vacancies highlights underlying issues within the public rental housing program, which is intended to stabilize housing for low-income citizens. A key challenge is balancing the need to purchase homes at low prices to maintain affordability against the risk of overpaying, which draws criticism for wasting taxpayer money. This price sensitivity has reportedly hampered LH's ability to secure the targeted number of homes, achieving only 65% of its goal for 2021-2025.

The editorial argues that focusing solely on the quantity of housing supply can be counterproductive. If the implementing agency prioritizes meeting numerical targets, it may end up acquiring properties that do not meet the preferences of core user groups. The growing number of vacant homes, some left empty for years, serves as evidence of this potential disconnect between supply and demand, suggesting that the acquired properties may not be desirable for the intended residents.

To ensure the success of the public rental housing policy, the government must prioritize securing homes of appropriate quality and at a balanced price. The editorial calls for a shift in focus from mere quantity to "supply with demand," emphasizing the need to consider detailed local factors such as public transportation, commercial amenities, and public services. This approach is crucial for providing rental housing that is genuinely suitable for demographics like newlyweds and young professionals, thereby contributing to both policy success and overall real estate market stability.