Building Futures: The Role of Youth Safe Housing in Seoul’s Urban Development

The Youth Safe Housing program enhances housing stability and tackles urban regeneration by converting unused buildings into residences. Photo credit: Seoul Metropolitan Government.

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The program tackles housing instability among young people by offering affordable public rental units and financial support, enhancing their economic independence.

Overview

Public rental housing policy in the Republic of Korea has traditionally focused on supporting the low-income demographic. However, young people have emerged as a vulnerable segment in terms of housing stability due to changes in demographic structures, low economic growth rates, low employment rates, and instability in the real estate market.

Recognizing the limitations of the traditional approach, innovations in housing support policies are being promoted to reflect the emerging changes in demographic dynamics.

A cornerstone of the government’s housing policies targeting young people is the support for youth safe housing, which includes provision of public rental housing and financial support. The objective is to help this demographic achieve economic independence by enhancing housing stability.

The Youth Safe Housing program, launched in 2017 and initially focused on the primary city center, has achieved large-scale success due to significantly lower rents. Following its success, the program has since been substantially expanded and remains operational today.

Challenges

It is difficult for young people—typically those aged 19–39—to fully achieve housing stability solely through economic activities, as housing costs continue to increase compared to their income. Housing costs account for the highest percentage of household expenditure among young people. As a result of this dynamic, more and more young people give up marriage and childbirth. Economic instability among the youth is a core contributor to the country’s low birth rate problem.

Context

Housing distribution was originally implemented in conjunction with the state's population and family control policy, serving as a birth control policy in the past. Single-person households and young people were typically excluded from the policy-making process. However, with the total birth rate falling to 0.78 in 2022, an increasingly aging population coupled with low fertility emerged as critical policy issues.

Despite the population decrease over three consecutive years, the number of registered households has increased due to the rising number of single and two-person households. In 2022, 62% of all households were single of two-person households.

The transitional characteristics of young people’s lives contribute to their housing vulnerability. As they transition into adult life from being students, they often start with low income and limited experience. This leads many newly-independent young people to live in poor housing conditions. In the past, this transitionary period was temporary. However, changes in the real estate and labor markets are making it more difficult for young people to accumulate sufficient income and assets to escape poor housing conditions.

Solutions

Low rents for Youth Safe Housing
The Youth Safe Housing program, the largest housing support program for young people, operates through two primary methods. The first is the public lease method where Seoul Housing & Communities Corporation (SH Corporation)—a public enterprise founded by the Seoul Metropolitan Government to implement urban development and housing projects—purchases housing units and rents them to young people at low prices. The second is the private lease method whereby SH Corporation signs long-term leases with private housing owners and re-rents the units to young people.

Rent levels for the Youth Safe Housing program varies depending on the lease type, with public leases costing 30%–70% of the market price and private leases at 75%–85% of market price. Rent levels are further specified within these ranges based on the income levels of the applicants.

Types of Youth Safe Housing supply. Source: Seoul Metropolitan Government.

Access to public transportation
The program strategically targets sites adjacent to subway stations and arterial roads with convenient access to public transport, such as buses and transfer stops. These areas were selected to facilitate lower commuting costs and promote more concentrated development. By focusing on areas adjacent to subway stations but remain socioeconomically and spatially underdeveloped, the project aims to foster a more balanced development across the city.

Win-win strategy with government, citizens, and implementers
Residential areas under the program may be upzoned to add more housing spaces while protecting commercial and business functions in the area. The Seoul Metropolitan Government provides benefits such as vertical upward movement (easing of building floor area ratio through upzoning) and tax incentives to induce the private sector to build rental housing. The government operates 10%–25% of completed buildings as public leases, with the remaining units provided as private leases. Various convenience and community spaces, such as book cafes, swimming pools, exhibition halls, and public day care centers are included in Youth Safety Housing homes to improve quality of life.

Spatial planning to improve quality of life and revitalize the local economy
The physical layout of the housing units under the program have been designed with the specific needs of youth in mind. For instance, the interior features a flat design with maximum use of built-in storage spaces and furnishings to minimize costs. The layout of buildings is also designed as a street-responsive commercial area, which enables stores to operate along the ground floor of the buildings, enhancing neighborhood livability and street vitality.

Financial support
Financial support is provided through low interest jeonse loans (jeonse is the country’s unique long-term deposit rental system consisting of a large lump-sum deposit without the need for monthly rent payments). Young people who meet certain criteria are also eligible to receive monthly rent subsidies. Local governments also offer indirect housing support, such as home repair and moving support services, to further reduce housing cost burdens.

Results

Housing stability and ease of economic burdens
The Youth Safe Housing program has been acclaimed for enhancing housing stability and guaranteeing basic rights for young people. From 2019 to 2023, 15,634 households received support under the program, with an additional 5,744 households being supported in 2024. Plans are underway to expand the program to support 53,000 households by 2027. By improving the housing stability, the program contributes to addressing the country’s low birth rate challenge.

Utilization of vacant buildings to address housing shortages
The program represents an economically efficient policy program that tackles multiple interconnected urban issues associated with housing stability. It leverages private capital investment to improve housing supply in pre-existing residential zones and converts vacant and unused buildings into housing solutions. This approach reduces vacancy in the city and increases available housing stock. 

Samyang-dong Youth House is an example of converting unused city buildings for residential purposes, promoting urban regeneration. Photo credit: EN Architects Group.

Lessons

Cooperation with residents
From the initial stages of the program, autonomous districts participate in an integrated deliberation committee to ensure needs of local residents are met. Convenience facilities, such as community center, swimming pool, and cultural facilities, were implemented as a result of these deliberations. This cooperation allows for tailored plans reflecting the specific needs and characteristics of each community.

Shared facilities such as swimming pools and libraries are provided for all residents, similar to those at the Youth Safety Housing in Daejo-dong, Eunpyeong-gu, Seoul. Photo credit: Seoul Metropolitan Government.

Housing supply and management system
Although youth safe housing has proven effective, local opposition can be a challenge. Social consensus is needed to address negative perceptions on low-cost rental housing, and to ensure that such facilities are accepted as beneficial to the neighborhood.

Consultation with residents and the establishment of a housing supply and management system for private enterprises are crucial components of the project. Given that more than half of all youth houses in the targeted areas are supplied by private rentals, it is essential to address conflicts arising from expensive deposits, rent, and maintenance costs. While government supplies these houses, private companies are often responsible for construction and maintenance, which can lead to various issues.

Resources

G. Byun et al. 2021. 2025 Seoul Youth Policy Vision and Strategy. Seoul Institute.

Seoul Housing & Communities Corporation. Youth Housing Support. 

Seoul Metropolitan Government. Finding Youth Housing. 

Seoul Metropolitan Government. Youth Housing Project. 

Seoul Metropolitan Government. Youth Safe Housing Promotion Plan. 

Minseo Kim
Urban Development Specialist, Seoul Urban Solutions Agency

Minseo Kim is an urban planning associate on overseas project development. She specializes in sustainable development and smart technology in urban planning, and overseas urban development projects. Prior to joining SUSA, she completed a doctorate in urban design and planning, and participated in many architectural and urban projects.

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Seoul Urban Solutions Agency

The Seoul Urban Solutions Agency (SUSA) was established by the Seoul Metropolitan Government to share its urban development experiences with other cities seeking to become sustainable and smart urban domains. Through a wide network of partnerships with the public and private sectors within and outside the Republic of Korea, SUSA works to connect and leverage its wide range of knowledge and resources to assist in solving the development challenges of its partner cities. 

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