Housing Crisis : A Case Study Of Affordable Housing Program

2074 WordsMay 4, 20169 Pages
Housing Boom and Government Regulation in China - A Case Study of Affordable Housing Program in Changzhou The right to an adequate standard of living is recognized as a human right in international human rights instruments. To make sure every citizen has a decent place to live is one of the basic goals for every government. China 's rise to be crowned as the world 's second-largest economy today is the latest milestone in a boom that has been running almost constantly since the country began the long process of embracing free-market principles more than 30 years ago. Housing Boom In the past 10 years, China’s residential real estate sector plays an important role in the economy and has been a key driver of growth. At the same time, a $580-billion stimulus package in 2008 helped China prevent a sharp slowdown in economic growth. This action has been considered timely and effective by most observers. However, there also have been concerns that banks loosened their lending standards too much as a result of the huge stimulus, among other factors. This led to excessive lending to individual home purchasers and rapidly rising housing prices that, in turn, may eventually lead to an increase in nonperforming loans at financial institutions should those prices collapse. Meanwhile, the real estate price in China is really high and unaffordable especially for people live in cities. Government Policy The development of housing markets in mainland China is a relatively new

More about Housing Crisis : A Case Study Of Affordable Housing Program

Open Document