Rising Rent Prices Cause 'Gentrification' Near University Areas

Hongdae Last Year Highest Monthly Rent 570,000 Won
Yeonhui-dong and Other University Areas Soar
Students Without Money Move to Outskirts

[Asia Economy Reporter Jeong Dong-hoon] The ripple effects of the overall rise in housing prices are sweeping from downtown areas to university districts. College students who find it difficult to afford rent are moving to the outskirts, and their places are being filled by relatively more financially stable office workers. Students refer to this phenomenon as 'university district gentrification.'

Heo In-ho (25), a student at Hongik University, one of the areas with the highest one-room rent in Seoul, said, "I have been using the school library more frequently to prepare for employment, but the monthly rent for one-room apartments near Seogyo-dong has increased by more than 100,000 won compared to when I enrolled, so I moved to the area near Eungam-dong early last year." He added, "It takes more than 40 minutes to commute to school, which is very inconvenient." Heo also expressed resentment, saying, "I resent the development around the school."

According to the '2019 Seoul One-Room Monthly Rent Trend' analyzed by the 'Dabang Data Analysis Center,' which examined 1.1 million one-room listings, the one-room rent around Hongik University reached up to 570,000 won (as of August 2019) based on a deposit of 10 million won. Seoul National University of Education was 570,000 won, Yonsei University 510,000 won, Konkuk University 480,000 won, and Hanyang University 470,000 won. The survey targeted one-room apartments with an exclusive area of 33㎡ (approximately 10 pyeong) or less. Compared to August 2016, three years ago, the monthly rent increased by 30,000 to 50,000 won (about 10%). These prices are similar to or slightly higher than the average one-room rent in Seoul (530,000 won). It is now impossible to expect cheap room rates and living expenses around university districts.

A university area densely packed with one-room studios. Photo by Asia Economy DB

With rising rent and surrounding living costs, college students with tight budgets are leaving their familiar school neighborhoods. This is the so-called 'university district gentrification.' Lee Min-jun (20), who entered Yonsei University this year, said, "I tried to find a room near the school in Yeonhui-dong or Seogyo-dong, but many newly built one-room apartments have monthly rents exceeding 600,000 won, so I gave up." He added, "Now, I am expanding my search to areas like Gajwa-dong and Eungam-dong."

The places vacated by college students are being occupied by office workers. These office workers want to enjoy the convenience of major commercial districts while being able to afford the increased rent. Office workers close to major business districts such as Gangnam, Yeouido, and City Hall prefer university district one-room apartments in Hongdae, Sinchon, Hanyang University, and Konkuk University.

Experts point out that the government and local authorities need to put more effort into providing stable housing environments for college students. Nam Ki-beom, a professor of urban geography at the University of Seoul, said, "Although measures such as youth rental housing are being introduced, the application process is complicated, and competition is fierce, so the actual benefits for college students are insufficient." He suggested, "Since the income and housing conditions of early young adults and young single-person households are poor, it is necessary to relax the selection criteria so that housing-poor college students and youth can receive cash support through housing benefits."

This content was produced with the assistance of AI translation services.