Aging Korea’s Seniors Have Nowhere to Go... Government Moves to Supply Housing for Middle-Class Seniors [Open Silver Housing]

Reviewing New Housing Models to Fill the Gap Between Silver Towns and Public Rentals
Exploring Application of Housing Act and Guarantee Support... Gathering Industry Feedback

The Ministry of Land, Infrastructure and Transport is considering introducing a new type of service-linked housing model targeting middle-class seniors. The aim is to explore ways for the private sector to supply senior-friendly housing that can fill the gap in the market between luxury silver towns and welfare housing for low-income seniors. The government also plans to establish a legal basis ahead of public hearings on the "Special Act on Senior Care Housing," which was proposed in the National Assembly last year.

According to the housing industry on April 21, the Ministry recently met with the Korea Housing Association and four construction companies to hear about the challenges in supplying senior housing and visited a luxury silver town in Seoul to examine its operation. A Ministry official stated, "We are currently gathering field feedback to identify practical ways to expand supply. The direction we are considering is to provide such housing as official residential units under the Housing Act, while also including the necessary living support services so that seniors can reside stably."

Currently, senior housing facilities are divided into three categories: private luxury silver towns overseen by the Ministry of Health and Welfare for high-income groups; public rental welfare housing for seniors supplied by the Ministry of Land, Infrastructure and Transport for low-income groups; and private rental-type Silver Stay facilities. The Ministry believes that, unlike silver towns (welfare housing for seniors) governed by the Senior Welfare Act, managing silver housing for the middle class under the Housing Act would clarify construction standards and make it easier to introduce new guarantee products from the Korea Housing and Urban Guarantee Corporation (HUG).

In order to establish a legal basis, the Ministry plans to expedite the passage of the "Special Act on Senior Care Housing" proposed in the National Assembly last year. The bill, co-sponsored by 24 lawmakers from both the People Power Party, including Lee Hunseung, and the Democratic Party of Korea, including Song Kiheon, separately defines "senior care housing" as housing equipped with senior-friendly facilities and directly providing care services or linking them with medical institutions. The bill also includes provisions for a registered operator system, deposit guarantees, and mandatory service provision. It stipulates that the minimum rental period must be at least 10 years.

The Ministry plans to gather the requirements of housing construction and operating companies at upcoming public hearings in the National Assembly to prepare practical institutional improvements. Discussions are underway to supply senior care housing that provides only essential basic services, such as meals, and links to external home care services as needed to reduce costs. This is a structure similar to Japan's service-linked senior housing (Sakoju).

The senior housing market is showing signs of polarization. The most active segment is luxury silver towns targeting high-income elderly people. According to the Ministry of Health and Welfare's "2025 Senior Welfare Facilities Status," the number of silver towns increased from 35 facilities (with a capacity of 7,684 residents) in 2019 to 43 facilities (9,231 residents) in 2024, representing a 23% increase in facilities and a 20% increase in capacity over five years. As of the end of last year, the number of welfare housing units for low-income seniors under the Ministry's jurisdiction was around 10,000 nationwide. Silver Stay is the only product capable of meeting private demand from the middle class, but the first move-ins are expected around 2029.

Silver Stay is designed within the public-supported private rental housing system, which means it is subject to public regulations such as a 20-year mandatory long-term lease, an initial rent set at no more than 95% of market rates, and a maximum increase of 5%. In exchange for receiving publicly supported land, operators must also accept funding participation and regulatory requirements. A Ministry official stated, "Silver Stay is a system that combines support and regulation. If the private sector wishes to supply senior-friendly housing outside this framework, we are separately reviewing what types of institutional support would be necessary."

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