Even With Higher Deposits, Tenants Choose to Stay: Why They Aren't Moving

Here is our first informative news update.

Deposit prices are up, but people are just staying put.

Many of you live in jeonse (lump-sum deposit) or monthly rent homes, right?

Recently, however, as finding jeonse or monthly rental homes has become extremely difficult, reports show an increasing number of tenants choosing to remain in their current homes even when deposits or monthly rent prices rise.

According to the Ministry of Land, Infrastructure and Transport, renewal contracts accounted for 52% of apartment jeonse and monthly rent contracts in Seoul last month.

This is the first time this year that renewals have surpassed new contracts.

In particular, among these renewal contracts, about 60% were extended through an agreement with the landlord without exercising the contract renewal right.

The reasons why tenants continue to stay in their current homes despite somewhat higher deposits or monthly rent include a shortage of rental properties, as well as the burden of broker fees and moving costs. Furthermore, moving requires adapting to a new environment.

These factors are analyzed to be acting as burdens as well.
※ Please note: This article was translated by AI and may contain errors.