Korean Housing Market Trends
2026 with a focus on Seoul
2025 Housing & Co-living Industry Changes,
and What to Expect in 2026
Korean version(https://brunch.co.kr/@logicdemov/50)
2025 has been a year where the direction of change in the housing and co-living industry became unmistakably clear. Beyond simple issues of housing prices or the rental market, we're seeing a significant shift in how people think about living, working, and choosing their cities and neighborhoods.
Based on these trends, I'd like to explore what changes might become more visible in 2026, and how cities and neighborhoods should position themselves to appeal to people.
10 Key Co-living News Stories of 2025
Here's what happened this year
Changes from the User Perspective
The most tangible change was the significant rise in monthly rents (1). A combination of factors including liquidity issues led to noticeably higher rental burdens, particularly in Seoul. This isn't just about numbers—it's a change that's fundamentally reshaping the criteria people use when choosing where to live.
Another interesting development is the growing demand for combined workspace-residences driven by the rise of solopreneurs (2). As solo entrepreneurs, freelancers, and creators multiply, demand has clearly grown for homes that aren't just for sleeping but where you can also work. The line between studio and living space is blurring.
We've also seen more people using Seoul as a place to "stay temporarily." Digital nomads, international students, people relocating for short-term projects—the rise of this "relationship population" (3) staying in cities for anywhere from one week to three months is creating a new demand segment in the housing market.
On the Operator and Brand Side
There have been major shifts in the industry landscape as well. Speaking as someone directly involved, I believe the most significant development was the merger of Episode and Localstitch (4). I hope you'll see this as a sign that domestic co-living and urban housing business models are beginning to move toward combining operational foundations, brand assets, and development capabilities.
Mangrove (5) has partnered with the Canada Pension Plan Investment Board (CPPIB) to expand sustainable housing development projects in Seoul, while Mr. Holmes (6) is expanding into the Japanese market. While still limited in scope, I expect we'll see Korean housing brands increasingly venture overseas.
There's also plenty of inbound movement. Overseas funds including Morgan Stanley are increasing their investments in the Korean housing market (7), and major international co-living brands like Weave, Cove, and Scape are opening locations in Seoul one after another (8). Korea's housing and operations market is clearly entering a phase where it's connecting with global standards.
Policy and New Projects
On October 15th, the government announced its "10.15 Housing Market Stabilization Measures" (9). The policy broadly aimed to stabilize the housing market and curb overheating. The government strengthened regulations by expanding designations of Seoul and key metropolitan areas as adjustment target zones, speculative overheating districts, and land transaction permit areas. Loan regulations were also tightened, with reduced LTV limits and strengthened DSR requirements based on housing price brackets to curb excessive borrowing. The measures aim to block investment and speculative demand to ease short-term price instability. Rental housing and residential business operators are watching closely and voicing opinions on the detailed policy directions following these measures.
On the new brand front, Episode launched its second brand "Conveni" (10), aimed at delivering convenient, universal lifestyle experiences. Simultaneously, "Episode Sinchon Campus" opened, applying a Purpose-Built Student Accommodation (PBSA) model. We're experimenting with a new alternative centered on the university district housing market—a space combining living, learning, and community as a place for both daily life and personal growth.
2026: Changes Likely Ahead
Looking back at 2025, several trends are likely to become even more pronounced in 2026: from the user perspective, the blurring boundaries between work and life; from the brand and operator perspective, Seoul-centered connections to global standards in terms of capital and operations; and from a policy perspective, efforts to address the market difficulties of 2025.
First, inter-city exchange and temporary resident populations will increase. Rather than permanent relocation, we're seeing more "stays" measured in months. Nomads, short-term residents, exchange students, project-based workers—experiencing cities through temporary living is becoming increasingly common.
Another important trend is the rise of the work=life lifestyle. Rather than separating workspaces from living spaces, more people prefer setups where their studio and residence are integrated. For solopreneurs, creators, freelancers, and solo entrepreneurs especially, this combination is becoming almost essential.
Add to this the reality of rising rents, and demand for "affordable housing" is naturally growing. Not simply "cheap housing," but residential formats that allow for staying, living, and working at reasonable prices. How to supply decent housing at reasonable prices is a challenge both the market and policymakers must face.
The criteria for preferred 1-person housing locations are also changing. While "station proximity" used to be paramount, what matters more now is whether there's a good café nearby, a library or bookstore within walking distance, an environment where you can connect with nature—in other words, "lifestyle cultural infrastructure." Put differently, rather than "fast mobility," the more important criterion is becoming "a neighborhood where I can create the daily life I love."
Remote life outside Seoul, which felt like a brief experiment during COVID, may become a more serious and sustained option in 2026. Centered on original downtown areas outside Seoul, we're seeing experiences expand from short stays to circular residence to second-base arrangements, with people gradually extending their time in these locations.
Small and medium-sized personal brands are emerging, and collaboration between brands will likely become more active. We expect to see more small brands with distinctive identities entering the housing market, working together through brand collaborations, operational partnerships, and region-based network projects.
So the More Important Question Going Forward
It Comes Down to Cities and Neighborhoods
Laying out all these changes, they seem to converge on one question: How can sustainable neighborhoods and cities become attractive to these new kinds of people? People who don't stay long in one place, people living without boundaries between work and life, people who want both reasonable prices and good living environments. I believe neighborhoods and cities that make these people think "I want to try living here" will receive increasing attention.
It's becoming clearer that sustainable cities shouldn't be cities that attract population, but cities that make people want to stay.
Let's watch together to see how the housing and co-living industry evolves in 2026. We'll keep working hard—separately and together.
Sumin Kim / Soft Developer
I plan, design, and operate spaces and businesses. instagram.com/leo_seongo
I founded and run Localstitch (localstitch.kr), which provides spaces and membership for urban creators. I lead business development at D&D Property Solution (dndproperty.com).
For space planning/development/design inquiries: Localstitch Design (localstitch-design.com)
