National housing affordability hits a five-year low, while Seoul defies the trend with rising prices and widening regional disparities

Source: TokenPost Original Title: Nationwide Housing Purchase Burden Index at Five-Year Low… Only Seoul Shows ‘Reverse Trend’ Original Link: The national housing purchase burden index has significantly eased, reaching its lowest level in nearly five years, while Seoul has reversed its trend, with regional disparities becoming more pronounced.

According to data released by the Korea Housing Finance Corporation on January 5, 2026, the national housing purchase burden index (K-HAI) for the third quarter of last year was 59.6, a decrease of 0.8 points quarter-over-quarter. This indicator reflects the proportion of principal and interest payments that median-income households need to bear when purchasing median-priced homes under standard loan conditions; a lower index indicates a lighter financial burden related to housing.

This is the first time since Q4 2020 (57.4) that the index has fallen below 60, marking the official start of a nationwide easing trend. Experts believe this is the result of combined effects of rising household incomes in the first to third quarters of last year and declining loan interest rates in the first and second quarters. Particularly in the third quarter, although both loan interest rates and household incomes slightly increased, the income growth effect was stronger, and the overall index continued to decline.

However, regional differences are evident. Seoul’s housing purchase burden index rebounded to 155.2 in the third quarter, up 1.8 points quarter-over-quarter, meaning about 40% of Seoul households’ income is used to repay housing mortgage principal and interest. Seoul is the only region among the 17 cities and provinces nationwide with an index exceeding 100, and it has the highest index.

Sejong (95.1), Gyeonggi (77.9), Jeju (69.5), Incheon (63.6), and other major metropolitan and regional cities still have indices above the national average, but most regions continue to show a downward trend. Jeonnam has the lowest at 27.7, indicating significant regional disparities in housing cost burdens. Except for Seoul, Sejong, Ulsan, Jeju, Gwangju, and a few other regions, all areas have experienced a decline in their indices.

This trend indicates that the dual structure of the real estate market across regions is further intensifying. While the national average has decreased, major cities like Seoul still face high financial burdens, requiring policy adjustments to address housing inequality. Given the potential future movements of benchmark interest rates and changes in household incomes, regions with high income proportions should consider medium- to long-term measures such as loan and tax adjustments to alleviate housing purchase burdens.