South Korea is experiencing a widening generational gap in wealth, driven largely by a significant decline in home ownership among younger adults. Data released by the Korean Statistical Information Service on Tuesday shows that the home ownership rate for residents aged 39 and under fell to 27.7 percent in 2025, marking a 2.4 percentage point decrease from the previous year and reaching the lowest level since 2017. This rate also represents a 13 percentage point drop from the peak of 40.7 percent recorded in 2018 and 2019.
In contrast, older age groups have seen relatively minor decreases in home ownership. For individuals in their fifties, the rate declined by 0.6 percentage points to 63.5 percent, while for those aged 60 and above, it dropped by 0.4 percentage points to 68.5 percent. These figures have resulted in the largest generational disparity in home ownership observed since 2017, with a gap of 35.8 percentage points between people in their fifties and those under 40, and a 40.8 percentage point gap between those aged 60 and over and the youngest cohort.
This divide extends beyond property ownership to net household assets. Last year, households headed by individuals 39 and under held an average of 219.5 million won (approximately HK$1.2 million), reflecting a 0.9 percent decline from 2024. In contrast, households in their fifties saw a 7.9 percent increase to 551.61 million won, while those 60 and older experienced a 3.2 percent rise to 535.91 million won.
The growing wealth and property ownership disparities have become a significant political issue. At a recent public forum focusing on real estate policy, President Lee Jae Myung proposed measures aimed at addressing these challenges. His plans include strengthening property holding taxes and expanding the supply of high-quality public rental housing to alleviate the housing shortage.
The housing difficulties have also affected President Lee’s public approval. A Gallup Korea survey of 1,003 adults conducted nationwide and released on Friday found his approval rating at 51 percent, continuing a decline for the third consecutive week. The public’s dissatisfaction with real estate policy was particularly pronounced, with 22 percent expressing disapproval. Other concerns included the economy, general livelihoods, and the high exchange rate, each receiving around 10 percent disapproval.
As South Korea grapples with these entrenched generational divides in wealth and housing, efforts to reform real estate policies will likely remain central to political and economic discourse in the coming months.