Monthly apartment rents in Seoul have soared to a record high, consuming nearly a quarter of a typical household’s income, as government policies accelerate a structural shift away from South Korea’s traditional long-term lease system.
According to data released Monday by the state-run Korea Real Estate Board, the city’s composite rental price index rose 0.52% in November, the sharpest monthly increase since late 2015. The surge was led by apartment rents, which jumped 0.64%, outpacing increases for townhouses and single-family homes.
The numbers reflect a rapid “monthlyization” of the rental market, where the share of monthly leases has climbed above 60% this year, up from 57.6% at the end of 2024. The shift comes as the supply of jeonse—Korea’s signature lump-sum deposit system where tenants pay a large upfront payment instead of monthly rent—continues to shrink.
Demand for premium monthly rentals has also spiked. Following the government’s mid-October property market measures, more than 55% of new apartment leases in Seoul were signed at monthly rates exceeding $750, signaling stronger demand for higher-end units.
In November, the average monthly rent for a Seoul apartment hit $1,100, a record high and an increase of more than $75 since the start of the year. For a median four-person household earning about $4,500 per month, that means roughly 24% of income now goes toward rent alone.
Housing analysts warn the upward pressure on rents could intensify as rising property taxes prompt landlords to pass costs to tenants. A study by the Korea Institute of Public Finance estimates that a 10% increase in a property’s tax-assessed value could push up jeonse prices by 1% to 1.3%, with a similar effect expected on monthly rents.
“Many baby boomers who own rental properties are now retiring, and rising property taxes will directly affect their decisions,” said Park Won-gap, a senior real estate expert at KB Real Estate. “To keep policies effective, increases in holding taxes should be balanced with reductions in transaction taxes.”
The squeeze on renters underscores a broader affordability crisis in the capital, where dwindling jeonse options, soaring monthly rents, and rising ownership costs are converging into what market watchers call a “perfect storm” for tenants.
