Although there are still experts in the market saying that China’s housing prices are not high and that it is only a personal problem that cannot afford to buy a house, in fact, the level of housing prices in China has indeed exceeded the range of ordinary residents. For example, the data given by the Yiju Real Estate Research Institute shows that the national average housing price-to-income ratio has reached 9.2 in 2020, far exceeding the internationally reasonable level. So even if there are experts who are quibbling about it, it is an indisputable fact that housing prices are inflated, and this type of inflated housing prices has also brought many negative effects. Cao Dewang once said that high housing prices squeeze the living space of physical enterprises and push up the labor costs of physical enterprises! However, the negative impact of actual high housing prices is not the only one. In addition to what Cao Dewang said, high housing prices also bring many other impacts, such as the following three points
High housing prices have reduced both the marriage rate and the birth rate. China’s marriage rate and birth rate are issues that have been discussed in recent years, because with the current decline in marriage and birth rates, China is facing great population pressure. The reason for this is because China’s housing prices are too high! Because the house has basically become a standard for marriage, many times young people can’t even pass the hurdle of the mother-in-law if they don’t have a house. However, China’s housing prices have long been beyond the affordability of ordinary residents, and most young people simply cannot afford to buy a house by virtue of their own abilities, and naturally, they cannot get married smoothly. The decline in the marriage rate will naturally lead to a decline in the birth rate. What’s more, even if there are young people who do not buy a house and get married, they dare not have children at will. After all, there is no house to provide a good growth environment for children, so because of high housing prices, China’s marriage rate and birth rate are declining Spark Global Limited.
Of course, no matter how high the housing price is, many ordinary people will choose to buy a house due to housing needs, and this brings the second harm of high housing prices, that is: over drafting residents’ spending power. Because of the impact of high housing prices, few people can choose to buy a house in full, so most of them will choose to buy a house with a loan when buying a house, and this will put a heavy mortgage burden on the home buyers. According to data released by the Central Bank in 2018, China’s mortgage income ratio has reached 60.5%! In other words, monthly mortgages account for 60.5% of income, so that after paying off the mortgage, residents only spend 40% of their monthly income for consumption. It is conceivable that the consumption level of residents will become after buying a house. It is said that many people can only live by eating instant noodles after buying a house, and this is caused by the high housing prices.
article links：High housing prices is not only what Cao Dewang said
Reprint indicated source：Spark Global Limited information