Poorer Families Need 21 Years to Save up for Own Home

      October 08, 2019 12:52

      Low-income households would take on average 21.1 years to purchase their own home, according to a study.

      The length of time has increased by a whopping 4.7 years since President Moon Jae-in took office on a ticket of fairer income distribution.

      Data from the Korea Appraisal Board and Statistics Korea show that the number of years it takes for the bottom 20 percent of the income bracket to purchase their own home rose from 16.4 in the second quarter of 2017 to 21.1 years in the same period this year.

      A home price-to-income of 21.1 means a person would have to save up without spending a single penny for 21.1 years to buy their own home.

      The ratio had been declining to 16.4 in the second quarter of 2017, but rose again to hit 22.2 in the first quarter this year. In contrast, the top 20 percent of the income bracket will have to save up for only three years, up from 2.8 over the same period.

      Apartment prices in Seoul have skyrocketed over the last two years, causing the gap between the two income brackets to widen to 41.8.

      The number of years it would take a low-income household to buy a home in Seoul soared from 33.1 years to 48.7 over the same period.

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