[Edaily Reporter LEE DAWON ] Amid a continuing shortage of jeonse (lump-sum deposit) properties, the rate of increase in jeonse and monthly rent prices has reached its highest level in about four years. In particular, monthly rent prices recorded their largest increase in about 13 years. With jeonse deposits having risen by nearly 35% over the past six years and loans taken out to secure them increasing by more than 50%, the burden of housing costs on tenants is growing as interest rates on jeonse loans also rise.

According to the Korea National Statistical Portal (KOSIS) operated by the Korea National Data Agency on the 15th, the nationwide consumer price index for jeonse and monthly rent in October rose 1.4% compared to the same month last year. This marks the highest rate of increase in 3 years and 10 months, since December 2022 (1.4%).

The rate of increase in jeonse and monthly rent prices has expanded for four consecutive months. The rate, which stood at 0.9% from January to March of this year, rose to 1.0% from April to June, then to 1.1% in July, 1.2% in August, 1.3% in September, and finally reached 1.4% in October. This is the first time the rate of increase has expanded for four or more consecutive months since January through May 2021. After recording negative growth from late 2023 through early 2024, the rent and lease price index turned positive in May 2024 and has since been accelerating its upward trend.

The upward trend in monthly rent prices was particularly pronounced. Last month, monthly rent prices rose 1.5% year-over-year, marking the highest rate of increase since December 2013 (1.5%). Jeonse prices also rose 1.4%, reaching their highest level since February 2023 (1.6%). Analysts attribute this to the shift toward monthly rent due to stricter regulations on jeonse loans and a shortage of jeonse properties.

The National Data Agency’s Consumer Price Index for jeonse and monthly rent is based on a survey of rental prices from approximately 11,000 jeonse and monthly-rent households nationwide. Since it includes both new and existing contracts, it reflects market price fluctuations later than price indices focused on new contracts, and the rate of increase is relatively smaller.

According to the “KB Housing Market Review” (October 2026 issue) published by the KB Financial Group Research Institute, nationwide jeonse prices rose 0.32% in September compared to the previous month, marking a larger increase than in August (0.30%). Prices in the Seoul Metropolitan Area rose 0.56%, with Seoul and Gyeonggi Province increasing by 0.64% and 0.59%, respectively.

The institute cited a decrease in new housing supply, an increase in existing tenants exercising their right to renew leases, and the shift of home-purchase demand toward the rental market as factors driving the rise in jeonse prices. The analysis suggests that while the supply of new housing is shrinking, the demand from existing tenants extending their leases and choosing to rent rather than buy is increasing, leading to a persistent shortage of jeonse properties.

By region, Ulsan recorded the highest nationwide increase in jeonse and monthly rent prices at 2.4%. Seoul followed at 2.1%, and Sejong at 1.6%. These were the only three regions to exceed the national average of 1.4%.

Ulsan has recorded the nation’s highest rate of increase for four consecutive months since July due to a shortage of supply resulting from a decline in new housing construction. In Seoul as well, the rate of increase expanded from 1.7% in July to 1.8% in August, 2.0% in September, and 2.1% in October. In Sejong, the upward trend in jeonse and monthly rent prices has steepened since July amid expectations of increased housing demand following the relocation of public institutions.

The burden of jeonse deposits and loans has also increased significantly over the long term. According to an analysis of microdata from the National Data Agency’s Household Financial Welfare Survey, the average jeonse deposit for households living in jeonse-type housing in 2025 was 217.97 million won, a 34.9% increase from 2019 (161.62 million won). During the same period, average financial debt incurred to secure the deposit rose by 53.0%, from 30.33 million won to 46.39 million won. This means the growth rate of debt exceeded the rise in deposit amounts by 18.1 percentage points.

The ratio of financial debt incurred to secure the jeonse deposit to the deposit amount itself also rose from 18.8% in 2019 to 21.3% last year. However, the growth rate of the average loan amount slowed to 0.4% in 2023 and decreased by 2.1% and 1.0% in 2024 and 2025, respectively.

In addition, interest rates on jeonse loans have recently begun to rise again. According to the Bank of Korea, the interest rate on new jeonse loans issued by commercial banks fell to 3.70% per annum in May of last year but rose to 4.57% in September of this year. This represents an increase of 0.87 percentage points over the same period, which could increase the interest burden on tenants given the growing volume of existing loans.

This is why there are calls to stabilize the jeonse and monthly rent markets—even if only to stabilize the housing market as a whole. Nam Hyuk-woo, a real estate researcher at Woori Bank, stated, “The shortage of jeonse and monthly rent listings is becoming prolonged, and with a lack of available properties, a sharp drop in prices in the short term seems unlikely,” adding, “For the real estate market to stabilize, jeonse and monthly rent prices must stabilize first.”