Six of Every Ten Household Heads Say a Home to Live in Is a Must
- Date 2019-01-17
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Six of Every Ten Household Heads Say a Home to Live in Is a Must
- Over half of households that do not own their housing intent on buying their first home
- One of every five households aged 30 or below willing to rent their home if the housing environment is stable
A recent survey found that six out of every ten household heads consider a home to live in a must. It also found that more than half of households not owning a home are willing to purchase one. In addition, one out of every five households aged 30 or younger said that they would opt for monthly or Jeonse rent if the housing environment is stable.
Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) stated on January 17, 2019, that it conducted the survey jointly with a survey agency to study housing finance trends in the nation. Entitled “Survey on the Use of Housing Finance and Bogeumjari Loan,” the survey was conducted on 5,000 ordinary households (with heads aged 20 or older) and 2,000 households on HF Bogeumjari Loans from August 13 to October 26, 2019.
□ Six out of every 10 households say that buying a home to live in is a must
According to the survey, 62.1% of the 5,000 ordinary households said that it is a must to purchase a home to live in. By age group, ▲ 59.0% of households aged 30 or younger, ▲ 60.9% of households in their 40s, ▲ 62.6% of households in their 50s, and ▲ 65.0% of households in their 60s shared this view. By income bracket, ▲ 59.4% of households with monthly income below KRW 2.01 million, ▲ 61.2% of households with monthly income of KRW 2.01 million to less than KRW 3.31 million, ▲ 62.5% of households with monthly income of KRW 3.31 million to less than KRW 4.31 million, ▲ 62.0% of households with monthly income of KRW 4.31 million to less than KRW 5.41 million, and 65.7% of households with monthly income of KRW 4.31 million or higher shared this view. This indicates that as household heads get older and earn a higher income, the more they feel the need to own a home of their own.
On the other hand, 20% of 1,176 households aged 30 or below said they would opt for monthly or Jeonse rent if the housing environment is stable. The figure went down to 18.3% in the 40s age group, 15.7% in the 50s age group, and 12.8% in the 60s and older age group.
□ Half of households with no home say that they are willing to buy a home in the future
Of the 5,000 ordinary households, 29.2% said that they are going to buy a home in the future. This figure is a 2.7 percent drop from the previous mark of 31.9%. Among the 1,909 households without a home, 50.7% of them said that they are willing to buy their first home. The percentage of those willing to buy their first home varied by region: 41.7% in Seoul, 35.3% in Gyeonggi Province, 25.4% in other metropolitan cities, and 20.0% in other regions. By age of household head, the figure was highest in the age bracket of 30 or younger. By housing type, 85.0% of the 1,460 households willing to buy a home responded that they prefer an apartment unit. The average amount of money they would spend on a new home is KRW 331.61 million. More specifically, 41.9% of them said they would spend KRW 300 million to KRW 600 million on a new home, while 26.0% said they would spend KRW 200 million to less than KRW 300 million.
The percentage of ordinary households with a home went up to 61.8%, a 2.2%-point increase from a year earlier. By region, the percentage of homeownership was ▲ 48.6% in Seoul, ▲ 61.3% in Gyeonggi Province, ▲ 65.0% in other metropolitan cities, and ▲ 67.8% in other regions. By age, the figure was lowest in the age group of 30 or younger at 33.0%, yet this marked a 3.7% increase from the previous year, the largest percent increase of all age groups.
□ 35% of households use housing finance products
The average monthly income of the 5,000 ordinary households was found to be KRW 3.86 million. In addition, 34.8% of the households are currently using housing finance products. By product, ▲ 26.4% said they have a mortgage loan, ▲ 7.8% have a Jeonse loan, and ▲ 0.8% have a collective loan for their new apartment home. By their loan maturity, 32.5% said that the maturity of their loan is 20 years. In addition, 38.1% said they have a floating-rate loan, while 33.0% of them have a fixed-rate loan.
At the same time, among 786 households willing to take out a mortgage loan, 21.0% said they will use Bogeumjari Loan, a state-sponsored long-term, fixed-rate mortgage loan. Furthermore, 19.5% said they plan to use Conforming Loans. The figures are up by 1.3%-points and 5.2%-points, respectively, from a year earlier.
□ The supply of customized public rental housing should be expanded to promote housing welfare
The survey also asked the households about what policies are necessary to promote housing welfare amid rapid social changes, such as the ageing population and a rise in the number of one-person households as a result of a decline in marriage. In response, 40.7% indicated that it is most needed to expand the supply of customized public rental housing. Asked about the most effective measure, either a regulatory or a policy measure, to stabilize the housing market, 44.1% said tighter regulations targeting multi-home owners would work best. In addition, 42.2% said an expanded supply of rental homes would improve the stability of the housing market.