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Seoul Rent vs Global Cities (2025): How Expensive Is Housing Compared to NYC, London, Tokyo?

Is rent in Seoul really cheaper than New York or London? We compare housing costs across Seoul, Ho Chi Minh, Tokyo, California, NYC, London, Shanghai, and Beijing—focusing on monthly rent, deposits, lease terms, and income burden. A practical guide for students and expats planning relocation.

Evan Han
Evan Han
CEO & Founder of FOHO, a housing platform for foreigners in Korea. Experienced in rental market trends, proptech innovation, and foreign tenant support.
SeoulRegionTIP
Seoul Rent vs Global Cities (2025): How Expensive Is Housing Compared to NYC, London, Tokyo?

Table of contents

Is Housing Expensive in South Korea Compared to the US and Europe?

Seoul isn't cheap anymore—but compared to New York, London, or Tokyo, it's still a middle ground. For international students and expats, the bigger challenge isn't just how much you pay, but how the system works: deposits, guarantors, and hidden fees that can trip you up if you're new.
This guide compares Seoul against New York, London, Tokyo, Shanghai, Beijing, Ho Chi Minh City, and California. You'll see where Seoul stands globally in 2025, what makes the Korean housing system unique, and what practical steps foreigners should take before signing a lease.

1. How Seoul Ranks in Rent Costs Globally

City
1BR (City Center)
1BR (Outside Center)
2BR (City Center)
Notes
Seoul
~₩1.2M ($900)
₩0.7–0.8M ($600)
₩1.6–1.8M ($1,250)
Deposit often 2–6 months rent
Ho Chi Minh City
₫28–33M ($1,150)
₫20–25M ($800–1,000)
₫40–45M ($1,600)
Rent burden often >100% of local salary
Tokyo
¥172k ($1,170)
¥91k ($620)
¥250k ($1,700)
High upfront fees, guarantor needed
New York
$3,950
$2,750
$5,000–5,500
Broker fee + 40x income rule
San Francisco
$3,350
$2,770
$4,000–4,500
Deposit 1–2 months
London
£2,190 ($2,700)
£1,622 ($2,000)
£3,000 ($3,700)
Deposit capped at 5 weeks' rent
Shanghai
¥5,000–12,000 ($730–1,750)
¥3,000–6,250 ($430–910)
¥15,000–32,000 ($2,180–4,650)
Rent paid 3 months upfront common
Beijing
¥6,000–15,000 ($870–2,180)
¥3,000–9,000 ($430–1,300)
¥19,550 ($2,800)
Agent fees up to 100% of rent
👉 Takeaway: Seoul is cheaper than NYC, London, or San Francisco, but significantly more expensive than Ho Chi Minh or most Chinese cities. For foreigners, Seoul's pain point is not just price, but deposit size and contract complexity.

2. The Hidden Cost Structures

Seoul – Key Money and Wolse

  • Jeonse: Pay 50–80% of the property value upfront. Live rent-free, but deposit is risky if landlord defaults.
  • Wolse: Smaller deposit (₩2–10M), monthly rent ₩500K–₩2M. Most common for expats.
  • Management fees (관리비): ₩50K–150K extra per month.

Tokyo – Key Money and Guarantors

  • Deposit (1–2 months), non-refundable key money (1–2 months), agent fee (1 month), guarantor service required. Furnished options rare.

New York – Broker Fees and Income Rules

  • Broker fee often 15% of annual rent. Landlords require proof of income (40x monthly rent). Deposit = 1–2 months rent.

London – Council Tax Surprise

  • Deposit max 5 weeks' rent. Council tax (£100–250/mo) is tenants' responsibility, often overlooked by newcomers.

Shanghai & Beijing – Advance Payment

  • Deposit 2–3 months' rent + agent commission (up to 100%). Rent often paid quarterly in advance, creating big upfront costs.

Ho Chi Minh City – Affordable but Burdensome

  • Deposit only 1–2 months, but rent burden exceeds average income. Almost all foreign-friendly apartments come furnished.

3. Rent vs. Income: Who Feels the Squeeze?

  • Seoul: Avg net salary ₩4.35M ($2,900). 1BR rent (~₩1.2M) = 31% of income. Manageable but not cheap.
  • New York: Avg net $5,263. Rent $3,952 = 75% of income. Severe burden.
  • London: Avg net £3,644. Rent £2,190 = 60% of income.
  • Ho Chi Minh: Avg net ₫17.3M ($697). Rent ₫28.5M ($1,150) = >100% of income. Expats rely on foreign salaries.
👉 Takeaway: In Seoul, rent is heavy but not crushing compared to Western hubs. For expats with overseas salaries, Seoul can feel "reasonable." For students relying on allowances, the deposit system is often the biggest obstacle.

4. What Expats and Students Should Watch For

  • Deposits: Korea and Japan require much higher deposits than the West. Don't underestimate the upfront cash needed.
  • Furnishings: Unlike Vietnam or US rentals, most Korean and Japanese units come unfurnished. Budget for furniture.
  • Documentation: Korea requires an Alien Registration Card (ARC) to sign contracts. Vietnam requires residency registration with police.
  • Guarantors: In Seoul and Tokyo, a local guarantor or guarantor company is often mandatory.
  • Hidden Fees: Management fees (Korea), council tax (UK), broker fees (NYC), agent commissions (China). Always ask before signing.

5. Why Seoul's System Feels "Different"

For foreigners, the Korean deposit culture is the most confusing:
  • Paying ₩20M upfront for a ₩700K/month studio shocks most expats.
  • Unlike New York or London, deposits are not just "security"—they're a financial instrument landlords use.
  • If you leave Korea earlier than planned, retrieving deposits can be stressful without proper contract registration.

6. Practical Tips for Students & Expats

✅ Register your lease at the local 구청 (district office). This legally protects your deposit.
✅ Check what's included in 관리비 (heating, elevator, cleaning, internet, or just building fees).
✅ Clarify furniture before signing; don't assume basics like a bed or fridge are included.
✅ Document everything with photos when moving in.
✅ Ask about notice period (usually 30–60 days in Seoul).
✅ Use escrow or verified platforms to avoid scams; especially important if you cannot meet landlords in person.

7. Final Word

Renting in Seoul is not "cheap," but compared to New York, London, or Tokyo, it's more accessible—especially if you can manage the deposit. For international students and expats, the key isn't just comparing prices, but understanding the rules of the game: deposit structures, legal protections, and hidden costs.
That's where services with escrow-based rent payments, and multilingual support (like foreignerHome.com) can make the difference. Instead of worrying about whether your deposit will be returned or if your contract is valid for your ARC, you can focus on your studies, career, or enjoying life in Korea.

FOHO Can Simplify It All

Managing housing costs in Korea can feel overwhelming — especially when fees, deposits, and utilities are all explained in Korean legal jargon.
That's where FOHO makes a difference. We help you understand what each option really means, verify listings, handle paperwork, and communicate with landlords — so you avoid costly mistakes and stay focused on what brought you to Korea in the first place.

Sources:

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