China’s housing market continues to slide, with home prices falling for the twenty-ninth consecutive month. What once acted as a powerful engine of growth has become a persistent drag, weighing on confidence and reinforcing caution among buyers who now expect prices to keep declining rather than rebound.
The downturn reflects deeper structural issues. Years of heavy construction created excess supply, while tighter regulations and developer debt problems weakened trust in the sector. At the same time, demographic shifts and slower income growth have reduced the pool of eager first-time buyers, especially in smaller cities.
Price declines are no longer limited to new homes. Resale markets are also softening, suggesting stress across all tiers of cities. This erosion of household wealth feeds back into weaker consumption, as property remains the main store of value for many Chinese families.
Despite policy easing and targeted support, the market shows little sign of a quick recovery. Authorities appear focused on managing a slow stabilization rather than reigniting a boom, accepting that housing will play a smaller, less speculative role in China’s future economy.
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