China Sets Target of Providing Housing to All Citizens, Caps Annual Rent Increases

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The Chinese central government has set the target of providing housing to all citizens via the extension of welfare housing schemes during the 14th Five Year Plan (2021 – 2025), while also imposing a gap on gains in home rental levels.

Wang Menghui (王蒙徽), head of the Ministry of Housing and Urban-Rural Development (MOHURD), said that during the 14th Five Year Plan China will “make the development of welfare rental housing the focal point, further improve the residential housing welfare system, increase the supply of welfare residential housing, and strive to achieve the provision of housing to all of the people.”

Wang made the remarks at a state press conference held on 31 August.

According to Wang the development of residential housing in China has already achieved “gigantic accomplishments, becoming the world’s largest residential housing welfare system.”

“China has created a huge volume of welfare residential housing, building over 80 million welfare housing units and upgraded shanty-town home units around the country to help over 200 million disadvantaged people to improve their housing conditions.

“The focal point of welfare rental housing is major cities with net population inflows, and resolving the housing difficulties of new urban residents and young people.

“Joint-ownership rights residential homes are tailored to suit local conditions by municipal governments, and mainly help residents that possess some economic capability, yet are unable to purchase homes to improve housing conditions.”

The Chinese government has also imposed a cap on rental price growth for homes in urban centres, mandating that it should not exceed 5% per annum.

“New urban residents and young people have worked for a relatively short time and have small incomes, so their inability to purchase homes and pay rent is weak,” said Ni Hong (倪虹), MOHURD deputy-minister.

“In major cities, 70% of new residents and young people rent homes, but homes that are more affordable are more remote and properties in more desirable locations are more expensive, creating practical difficulties.”

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