South Korea faces crisis of housing inequality urgently

“The young Americans in their 20s today are probably the angriest in history.”

Last May, while covering a rally for then-presidential candidate Donald Trump in New York City, I spoke with a young man in his 20s supporting Trump despite the city’s largely Democratic leanings. When asked why, he expressed frustration about soaring rent and living costs.

He said, “Only those who own stocks or real estate are getting richer. For our generation, that’s just not possible.” Although the U.S. economy is growing, many young people feel excluded from its benefits.

This experience underscored a global trend—asset inflation leaving deep scars. In New York, housing prices and rents have surged for decades, with a post-pandemic spike reaching record highs. Such inflation affects more than finances; it shapes life choices, career paths, and views on marriage and values.

Seoul faces a similar housing boom with severe consequences. Even those with stable jobs find it difficult to secure housing, leading to despair. The term “lightning poor” emerged to describe those suddenly impoverished by real estate inequality.

What sets Seoul apart is how government regulations have often fueled price hikes and anxiety. While controlling household debt is necessary, strict limits on loans, such as the 2019 rule banning mortgages on homes over 1.5 billion won, excluded genuine buyers and favored cash-rich investors. The unintended message became, “Get a loan while you still can.”

After a new administration took office, fears of more regulation sparked a buying surge, overheating the market. Authorities now consider capping total mortgage volumes and are pressuring banks not to lower interest rates. This has pushed mortgage rates for creditworthy borrowers above rates for small business loans, increasing burdens for genuine buyers.

A stable home is a basic human need. The new government must prioritize addressing the damage caused by soaring property prices. Experts emphasize supply-side solutions that meet actual market demand rather than focusing only on demand suppression, which risks further volatility. Sustainable housing policies, even if slow to take effect, are essential for long-term stability.