Seoul weighs wider Youth Safe Housing radius to add 17,500 homes by 2030

Seoul is reviewing a plan to expand the transit-zone radius for its Youth Safe Housing program from 250 meters to 500 meters, or roughly a 10-minute walk, in a move it says could deliver 17,500 additional units by 2030 and raise cumulative supply to around 46,000. Mayor Oh Se-hoon presented the plan during a visit to the 605-unit Gaebong Sageum complex in Guro-gu, where residents said below-market rents and caps on rent increases had eased housing costs, though some flagged problems securing renewal deposits under tighter household lending rules. The review comes as Seoul assesses the potential impact of the central government's real estate tax reforms on the jeonse (lump-sum deposit lease) and monthly rental markets. The city said young adults and newlyweds are especially exposed because they rely heavily on rental housing, and it is responding with both direct supply expansion and stronger financial support. As of the end of July, 33,621 units at 101 sites were operating under the program. Public rental homes are offered at 30% to 50% of nearby market rates, while publicly supported private rentals are priced at 75% to 85%, helping drive a 105-to-1 average competition ratio in this year's first public-rental tenant recruitment. Seoul is also trying to improve project economics. Since April, it has raised the cap on interest compensation for construction funds to private developers to 4% from 2% over three years, and it plans this month to temporarily lower the public contribution ratio by 5 percentage points for three years. Separately, the city is expanding rent and financing support, including a 200,000 won monthly rent subsidy for 28,000 people each year, a new 80,000 won monthly maintenance subsidy for those not selected for rent aid, and a higher income threshold for rental deposit interest support, increased to 50 million won from 40 million won with up to 3% support on loan amounts. Beyond this program, Seoul aims to supply 74,000 youth-focused housing units by 2030, including about 25,000 new units such as 10,000 Seoul-style SaeSsak studio apartments and 2,000 Didimdol homes. Oh also tied the push to broader redevelopment efforts, saying urban renewal remains a core supply tool in the land-constrained capital.

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