An official stated on Tuesday that China will supply 6.5 million additional low-cost rental homes in 40 major cities between 2021 and 2025, in order to meet increased demand in large cities as their populations grow.
According to an official transcript, Pan Wei, an official from the Ministry of Housing and Urban-Rural Development, claimed that this will ease living difficulties for 13 million young people.
Under President Xi Jinping's "common prosperity" plan, China has increased efforts to address housing issues affecting young people in particular, despite skyrocketing home prices in major cities.
Cities with big population inflows and high home prices are the focus of the development push for cheap rental housing, Pan said.
According to calculations based on city plans, Tier-one cities such as Beijing and Shanghai will supply a total of 1.87 million units of low-cost rental housing between 2021 and 2025. 936,000 units were offered in 40 cities in 2021, housing 2 million young people, said Pan.
With monthly new home prices decreasing and a liquidity problem engulfing several major property developers, China's housing downturn is anticipated to persist in 2022.
To avoid a hard landing and meet demand from non-speculative home buyers, Chinese regulators are relaxing property restrictions slightly.