The housing problem in China
I think housing is one of the most serious and urgent problems in Chinese society.
In 2019, the average monthly salary in Beijing is 6,906 yuan (data from the SALARY LEVEL REPORT OF BEIJING) , while the average housing price in recent years is 40,000 to 70,000 yuan per square meter (data from the CHINA REAL ESTATE ASSOCIATION). Buying a house needs about 4 million yuan, which can only remain a distant dream for most of the "Beijing drifters" with a monthly salary less than 7,000 yuan.
According to the international practice, the vacancy rate of commercial housing is between 5% and 10%, which is a reasonable area. The balance between supply and demand of commercial housing is conducive to the healthy development of the national economy. The vacancy rate is between 10% and 20%, which is the danger area of vacancy, which means it is necessary to take certain measures to increase the sales of commercial housing to ensure the normal development of the real estate market and the normal operation of the national economy. While in Shanghai and Beijing, the vacancy rate of new housing built after 2000 is above 40%, and the vacancy rate of new housing built after 2010 is not less than 60%, in 2007, real estate investment reached 10.13 percent of GDP, which is a really dangerous phenomenon for society.
The housing price in first-tier cities such as Beijing and Shanghai has been hyped up to such a high level that a young man who does not want to engage in speculation and who is ambitious after graduation, need work hard all his life and even though who cannot afford a house of his own, still having to survive in the dilemma of renting a house. The harm caused by high housing price has penetrated into every aspect of people's life.
Firstly, it represses the young-generation’s positiveness for working hard. After studying painstakingly for more than 20 years, they could not even afford to buy their own house. On the other hand, those who had accumulated a large amount of real estate accumulated by their grandparents and parents were easily born with a golden key. This kind of class difference that accompanied people's birth become more and more solidified.
Secondly, promoting the tendency for no-marriage and dink. In the post-90s generation, a new generation that plays an important role in China's development, the phenomenon of non-marriage and dink has become a trend. Most young people say that they don't even have the capital to afford their own house and enjoy their life as a young man, let alone raise their children. This phenomenon is also driving China into an aging society.
Finally, giving bad influence to the development of a country. The high housing price cannot last forever. Sooner or later, the housing price will be adjusted back to the residential property and the housing price bubble will pop up. At that time, the housing price will be greatly adjusted due to deleveraging, which will heavily impact the financial system.