China's Housing Crisis is Getting Much Worse

Over the last year China's housing market has faced some really challenges. That's vital too, because housing is hugely important to households and local governments - more than almost any other country.

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1 - Adam Tooze, Ones and Twos

[cageybee]

these massive prices are completely and utterly unsustainable. they are sucking the wealth out of the next generation. our basic human need for shelter is not your retirement fund or your government budget. it's a basic human need.

[ancova]

You didn't mention how the social credit system is exacerbating the debt crisis for Chinese citizens paying these mortgages. Because the social credit system in China affects which schools your child can get into, the families who choose to stop paying off the mortgages frequently divorce so one parent shoulders the debt (and drop in social credit) while the other parent (without the debt) takes care of the children's schooling. It's truly a horrific scenario.

[marionettekent]

The cultural aspect also plays a vital role here. "Buying a house", or a flat in modern days, means "having a home" as well. Renting isn't, which is why people spend all their savings, even that means they will be boarder line broke, they will do it. This of course exacerbates the situation.

[kevinbarry]

Those developers which relied on debt for their funding. In other words, All of them.

[mujtabaellari]

Bit off topic here but I wanted to thank the entire TL:DR crew.
Yesterday I was at my girlfriends parents house and I ended up talking about current political events with her dad.

At the end of it he complimented me and said I was well informed.
All I could think when he said that was that close tot 80% of my news intake is from TL:DR videos haha.

So thanks again guys!

[chwned]

"How did you go bankrupt?"
'Very slowly, and then quite suddenly.'
-- American Adage

[giantWario]

One important thing that isn't mentioned is how most Chinese citizens can really only invest in housing in the first place. It's not merely their favorite investment option, it's really their only investment option because every other possible investment like the stock market is taxed like crazy in China by the CCP meaning that they'd all end up losing money if they invested in anything else. So if the housing market crash, it means that Chinese citizens will no longer have any investment opportunities in their country so they'll all invest abroad instead which is also a massive problem.

[shanep.]

It’s no wonder why China’s central government can spend so much on loans, stimulus, and the military. Imagine if the US federal government also gets state taxes, they’d have an additional trillion dollars to spend.

[bearcubdaycare]

I got a notification for this video on Nebula, but, despite the name matching, the actual video was the one about the EU and Hungary.

[samd]

Tdlr just do these kind of breakdowns so well

[theot]

Many thanks for the clarity and wisdom in the post

[neilcook]

Superb synopsis of what’s unfolded over the last year, thank you

[thomasd]

I'm a professor of Chinese history, living in Beijing. This analysis is spot on.

[TillBarkley]

The Nebula version of this video has the one of Hungary instead of this one.
It's quite funny to me how this always keeps happening 🤣🙂

[ThomAs]

Your Video on Nebula for this video is linked to Hungary vs EU, not this one

[SwedishSinologyNerd]

The Chinese central gov't is the spitting image of that doggo meme: "Pls growth? No funding! Only growth!" xD
On a more serious note, it's unlikely that Xi would compromize on any of those points, cause Emp. Pooh Bear's ego is so frail that he'd rather see the country burn than appear "weak".

[Elongated_Muskrat]

This is one of the biggest bubbles in human history. The pop will be very dramatic.

[cgt]

Meanwhile here in Romania, we have one of the highest housing rates in the world, even if the apartments are not luxurious, but its better than nothing i guess

[kimwit]

I always had my doubts about the solidity of China's economy. Seeing this video with how the local governments finances are structured (or rather not structured) as well as the massive real estate bubble that is now at risk of collapsing on itself, it looks even worse than I thought. And political decisions are not likely to improve the situation.

[Awesome]

I'm wondering about this issue in Turkey. Living costs and household prices are skyrocketing for years. Everything is actually.. But I am shockingly seeing that people keep buying. Whether it be grocery shopping or buying houses... It is really shocking. Think about it, minimum wages are around 4, 5k tl and it's not minimum, rather medium believe me and rents are around 3k.. It's madness...