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Assets in their 40s increased by more than 110 million won over the past three years, recording the largest increase among all age groups.
It is analyzed that the Moon Jae-in government was launched in the late 30s to early 40s when they succeeded in buying their own house, and since then, they have been able to enjoy the benefits of rising house prices.
According to the National Statistical Office on the 10th, the average assets of householders in their 40s stood at 553.7 million won last year, an increase of 110.48 million won (24.9%) from 2018 (44322 million won). The increase in assets in their 40s greatly exceeded that of other age groups, such as △89.58 million won in their 30s, 87.2 million won in their 50s, 77.12 million won in their 60s, and 22.34 million won in their 20s. It was nearly five times higher than that of household heads under the age of 20.
The increase in real estate assets following the surge in house prices during the Moon Jae-in administration is considered to be the biggest factor. The real estate assets of householders in their 40s increased by 99.9 million won from 293.91 million won in 2018 to 393.81 million won in 2021. The increase was also the largest among all age groups.
According to the Ministry of Land, Infrastructure and Transport, the average age of buying a house for the first time through purchase or inheritance is 39.9 years old. This means that the current 40s were able to accumulate real estate assets as house prices rose in earnest after they succeeded in buying a house three or four years ago. Unlike those in their 20s and 30s, who have difficulties in finding a house, marriage and childbirth, and their parents, in their 50s and 60s, it is analyzed that there are relatively few complaints about the surge in house prices.
Seong Tae-yoon, a professor of economics at Yonsei University, said, “The 40s in life cycle income is a period of accumulating assets.
23% of homeowners in their 40s, double those in their 30s… like 50’s
The average debt is 120 million won, and the debt is the highest… 110 million in their 30s, 100 million in their 50s
A (42), an office worker, bought an 84-square-meter apartment in Yongin, Gyeonggi-do, for 630 million won in 2020, when his eldest child entered elementary school. It was determined that it was necessary to provide a more stable place to live than to live in a jeonse for the education of their children. She used not only bank loans but also ‘acquaintances and acquaintances’. Now, two years later, he thinks it’s a good choice. This is because the house price jumped by 120 million won to 850 million won after Mr. A bought it.
The 40s are the period when people accumulate the most wealth in their life cycle, such as 10 years or so after their first job, when their salary increases, and when they get married and have children as an opportunity to buy a house. Generation X, who reached their 40s before and after the Moon Jae-in administration took office, climbed into a period of rising house prices, achieving greater asset growth than ever before.
○22.7% of those in their 40s own their own house
According to the National Statistical Office on the 10th, the average real estate assets of householders in their 40s stood at 39.38 million won as of last year, an increase of 99.9 million won from 2018 (2939.1 million won). Although real estate assets increased in other age groups, the increase was at least 20 million won less than that of those in their 40s.
This is interpreted as the reason that there are many cases of people starting to buy their own house as they enter the age of infidelity. As the number of new homeowners increases, the average value of the increase in assets is more prominent than that of other generations. According to the Ministry of Land, Infrastructure and Transport, the average age of a householder who buys a house for the first time in their life is 38 to 40 years old from 2010 to 2020. In fact, the number of homeowners increases significantly from the age of 40.
According to Statistics Korea, among 14,697,000 homeowners in 2020, those in their 40s accounted for 22.7% (3338,000 people). It is about double the number of people in their 30s (1.68 million people, 11.4%) and not much different from those in their 50s (3.735,000 people, 25.4%). Thanks to this, the increase in total assets was the largest in the 40s. Assets in their 40s increased by 110.48 million won over the past three years, which was 20.9 million won more than those in their 30s (89.58 million won), the second largest in increase.
It is evaluated that those in their 40s who became self-owners just before the rising house price trend enjoyed the ‘real estate effect’ to the fullest than in the past. For example, in the early 2010s, the level of asset growth was not as high as it is today. In 2014, the average asset of those in their 40s was 330.72 million won, an increase of 21.85 million won compared to 2011 (38.87 million won).
Some analysts believe that the experience of asset growth in their 40s may have had an impact on the rise of the Democratic Party’s largest support group. Koo Jeong-woo, a sociology professor at Sungkyunkwan University, said, “The MZ generation (millennials + Generation Z) gave up on dating and marriage due to the soaring house prices, and their parents, in their 50s and 60s, shared such experiences and turned their backs on the Moon Jae-in government all at once, but still Generation X, with young children, has little antipathy towards the real estate situation,” he said.
○There are as many liabilities as there are assets… Average holding 120 million won
People in their 40s are the generation with the largest amount of debt as their assets are large. As of last year, the average debt of those in their 40s was 12.08 million won, more than those in their 30s (111.9 million won) and 50s (174 million won). Financial liabilities stood at 92.56 million won, of which 71.63 million won for secured loans and 15.34 million won for credit loans. On the other hand, the extent of debt growth over the past three years has been smaller than that of those in their 30s. The average debt of those in their 30s increased by 33.17 million won from 787.30 million won in 2018 to 111.9 million won last year, and those in their 40s increased by 23.12 million won during the same period.
As a result of a survey conducted by Hana Financial Group last year on 1,000 income earners in their 40s in Seoul and the four major metropolitan cities, 56% found that they own a house in the name of themselves or their spouses. It was found that homeowners spend an average of 750,000 won a month on debt repayment. More than half of those in their 40s or more have secured a stable residential space, but 56% said that the repayment amount is burdensome.
Correspondent Lee In-hyuk/Lee Ho-gi twopeople@hankyung.com
