July Apartment Move-in Volume Hits 10-Year Low: How Long Will the Jeonse Crisis Last?

Scheduled nationwide apartment move-ins for July 2026 have plummeted to 15,646 units, marking the lowest level in 10 years. The severe lack of new supply is rapidly increasing fears of a worsening 'jeonse' (lump-sum deposit rental) crisis across the market.

3 Key Factors Worsening the Jeonse Crisis in H2

The sharp drop in move-in volume is amplifying its impact by intertwining with structural issues in the broader rental market.

• Deepening Supply Drought in the Capital Region: In the highly demanded capital region, monthly move-in volumes have remained below 10,000 units for seven consecutive months this year. The growing scarcity of new apartments is also driving a balloon effect, pushing waitlist demand heavily toward the pre-sale market.
• Impact of Stricter Residency Requirements: Due to continuous loan regulations and newly designated speculative zones (like Dongtan and Giheung), the proportion of landlords choosing to reside in their own properties has surged. Consequently, new jeonse listings hitting the market have decreased significantly compared to previous years.
• Accelerated Shift from Jeonse to Monthly Rent: Unable to bear the burden of steeply rising jeonse prices, a rapidly growing number of tenants are shifting to semi-jeonse or standard monthly rent. This transition is cited as a primary factor exacerbating housing cost burdens for working-class households.

Future Real Estate Market Outlook

Real estate experts anticipate that the shortage of move-in volumes will persist for the foreseeable future. Given the multi-year lag required to supply new apartments, upward pressure on jeonse prices—especially in the capital region—is expected to remain high throughout the second half of the year. The government's comprehensive real estate tax reform plan, scheduled for release at the end of this month, is considered the biggest variable that could potentially stabilize the market by encouraging multiple-home owners to release their properties.

Frequently Asked Questions (FAQ)

When can we expect the jeonse crisis to be resolved?

Experts forecast that since a short-term increase in move-in volumes is highly unlikely, instability in the jeonse market will likely persist until at least the first half of next year. Market volatility is expected to remain high until large-scale supplies, such as move-ins for the 3rd phase new towns, materialize.

How should tenants navigate the rising jeonse prices?

With a clear scarcity of jeonse listings, it is crucial for tenants approaching lease expiration to decide whether to exercise their lease renewal rights or proactively search for new listings at least 3 to 6 months in advance.