Wenyi Zhang
Research expert covering Greater China
Social housing in China - statistics & facts
Since the end of the 1990s, when China discontinued its government-planned welfare housing allocation system and liberalized the housing market, China's real estate sector has been instrumental in the country's economic success story. It is now considered a pillar industry in China, contributing more than six percent of the country's gross domestic product (GDP) in 2022. However, the development of the industry has resulted in a prevalent increase in property prices across all regions of China, especially in major urban centers in the eastern part of the country, where property prices often become unaffordable for an average resident.
To solve the housing shortage for low-income residents and those living in poor housing conditions, the Chinese government introduced various types of subsidized housing schemes in different stages, including subsidized urban renewal programs, the "economically affordable housing" in which the occupants own the property, and various forms of subsidized rental housing.
Local governments often partnered with property developers to demolish these buildings while offering residents newly-built high-rise apartments or financial compensation. The scale of these urban renewal projects decreased considerably in 2019 before dropping steadily every year thereafter.
The southern province of Guangdong, with its large migrant labor population and a strong economy has built the highest number of subsidized rental housing in China. Some regions, including Zhejiang and Jiangsu, meanwhile, have sought to reduce housing burdens by providing rental support to low-income tenants to mitigate their rent expenses.
Urban renewal projects
Particularly dominant in the 2000s, government-subsidized reconstructions in rundown urban areas constituted an important component of social housing in China. At the time, the center of China's major cities, where land value was rising steeply thanks to the country's rapidly growing economy, were often packed with housing stocks built decades ago at much lower standards.Local governments often partnered with property developers to demolish these buildings while offering residents newly-built high-rise apartments or financial compensation. The scale of these urban renewal projects decreased considerably in 2019 before dropping steadily every year thereafter.
Subsidized rental housing and rental supports
In recent years, more social housing has been made available in the form of subsidized rental housing for those in need. Units are not only offered at affordable rates to low-income residents but also to migrant workers who cannot afford the market rent due to their low wages.The southern province of Guangdong, with its large migrant labor population and a strong economy has built the highest number of subsidized rental housing in China. Some regions, including Zhejiang and Jiangsu, meanwhile, have sought to reduce housing burdens by providing rental support to low-income tenants to mitigate their rent expenses.
