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Swathes of unsold homes in places like Spain and Florida after the last bust suggest it can be both!

• baybal2 8y ago
  That's still a far cry from 2.2 billion vacant square metres that China has, enough to rehouse the whole of California.
  • nopinsight 8y ago
    It sounds enormous until you consider their population size and urbanization rate. At the rate of 0.75% per year, it equals to 10.5 million people a year. Assuming 40 square metres per person, the stock only lasts about 5 years. In addition, real estate is the preferred investment vehicle among the older and on average wealthier segment of the population. "Urbanisation in China increased in speed following the initiation of the reform and opening policy. By the end of 2017, 59.4% of the total population lived in urban areas, a dramatic increase from 26% in 1990." https://en.m.wikipedia.org/wiki/Urbanization_in_China https://en.m.wikipedia.org/wiki/Urbanization_in_China
    • yostrovs 8y ago
      Is the housing stock growing or shrinking or staying the same?
    • Latteland 8y ago
      How many people can soak up that high priced unused real estate? Not that many. I expect there to eventually be a housing and infrastructure crash in China, but maybe they can absorb it because they are so large.
      • nopinsight 8y ago
        One also needs to consider saving rate (very high) and mortgage policy to answer that question.