The Korea Land & Housing Corporation (LH) found that the vacancy rate of public rental housing in population-decline areas, operated as a housing welfare program, was higher than the vacancy rate for all public rental housing. Critics say public rental housing left vacant is failing to stem population decline.
According to the report "Status and issues of public institutions for the 2025 National Assembly audit," published by the National Assembly Budget Office on the 29th, LH operated a total of 1,456,000 public rental housing units nationwide last year through housing welfare programs, including construction rentals, purchase rentals, and jeonse rentals. Among them, it operated 76,852 construction-type public rental housing units in 83 of the 89 local governments designated by the Ministry of the Interior and Safety as population-decline areas.
The data showed that of the 76,852 construction-type public rental housing units operated in population-decline areas, 4,274 were vacant, recording a vacancy rate of 5.6%. That is higher than the nationwide vacancy rate of 4.3% for construction-type public rental housing. In particular, some local governments exceeded 15%, including Yeongdo District and Seo District in Busan, which recorded 15.3%.
Observers warn that an increase in vacant homes in population-decline areas could lead to neglect in management and safety concerns, and that deteriorating residential environments could hinder the inflow of new residents.
Experts said vacancies should be reduced by planning supply based on demand surveys when providing public rental housing.
Seo Jin-hyeong, a professor in the Department of Real Estate Law at Kwangwoon University, said, "If public rental housing is supplied where there is no demand and vacancies increase, it could ultimately result in a waste of taxes. Supply based on thorough demand analysis is necessary."
The National Assembly Budget Office also noted that it is necessary to carefully analyze demand for public rental housing and to establish and implement construction-rental supply plans that consider regional demand and housing conditions.
In data previously analyzed by the office of lawmaker An Tae-joon of the Democratic Party of Korea, as of Jul. this year, 58,448 public rental housing units had remained unrented for six months or longer, a 135% increase from 2020. An said, "We need to devise ways to transform them into high-quality public rental housing complexes where people want to live by improving locations, adding social infrastructure, and fostering diverse communities."
LH said it will work to lower the vacancy rate by coordinating supply with local governments and private corporations. An LH official said, "There is also a need to secure a certain level of vacancies as a social safety net to be used for emergency housing support for disaster victims in the event of disasters such as wildfires and earthquakes," adding, "In regions with high vacancy rates, we are continuing eased supply by relaxing eligibility and lease conditions and simplifying procedures, and for long-term unrented dwellings, we are promoting institutional supply through consultations with demand agencies such as the state, local governments, and corporations."