Wednesday, June 11, 2014

48.98 Million Homes Empty in China

As a result of massive money printing by China's central bank, The People's Bank of China, and incentives for local government leaders not to allow lower market clearing prices, the housing glut in China is spectacular.

 More than 20 percent of homes owned by urban households in China remained empty in 2013, according to the China Household Finance Survey. The overall vacancy rate for residential properties in urban areas across the country rose 1.8 percent from 2011 to 22.4 percent last year, translating into around 48.98 million homes being vacant during the period, said the report.

China is on the edge of perhaps the greatest financial and economic crash in history.


  1. If you build it they will come, (maybe).

    1. Not if you artificially keep the price out of reach of potential customers.

  2. Kind of reminds me of California. They built a bunch of houses north of Sacramento (and kept on building), but nobody (or hardly anyone) was moving in. They were expensive as well with small lots. Back then when I was watching them build up this land, I wasn't much into economics or anything of it, but I could tell it was going to be a cesspool. Something was off about the whole thing. Now I know why.