Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 27/08/2023
Author Guoqiang Zhang, et.al
Published By Developments in the Built Environment
Edited By Saba Bilquis
Uncategorized

Policy-based initiatives on promoting China’s affordable housing

China’s affordable housing

The construction industry’s commitment to achieving carbon neutrality has underscored the urgency of promoting green and low-carbon sustainable affordable housing. However, the development process has encountered several challenges, including conflicts between the central and local governments arising from differences in value preferences, financial constraints faced by local governments, inadequate access mechanisms, lenient screening processes, insufficient funding, and remote locations. Despite its significance, the policies related to affordable housing, especially in the context of assembly affordable housing, have received limited systematic examination. To address this research gap, this paper presents a comprehensive review and analysis of China’s affordable housing policies.

Firstly, it compiles and compares recent affordable housing policies in China, serving as a valuable reference for future affordable housing construction endeavors. Secondly, it conducts an in-depth analysis of the barriers and challenges obstructing affordable housing development in China and proposes corresponding measures for improvement. Moreover, this paper identifies significant opportunities for affordable housing development in the country and explores the potential synergy between the development of assembly buildings and affordable housing by leveraging their respective attributes. By illuminating pertinent policies and associated issues, this research aims to inform policymakers, practitioners, and stakeholders involved in the affordable housing sector.

Additionally, it aims to stimulate further research and innovation in the field, contributing to effective and sustainable housing solutions for low-income communities and society at large. This paper systematically analyzes the current status of affordable housing policies, challenges, and opportunities. It also discusses the application of assembly-building techniques in the realm of affordable housing, providing valuable insights to address traditional housing issues.

Housing, being a fundamental human demand, holds a pivotal role in determining the overall quality of life (Winston and East away, 2008; Li et al., 2021, 2023; Tusell, 2017). In recent years, rent levels in some countries have risen more rapidly than incomes, and housing has become increasingly unaffordable, especially for low-income groups (Guzikova and Plotnikova, 2018) (Corlett et al., 2019). Meanwhile, in the context of developing countries, the issue of housing scarcity remains both widespread and intricate (Kamruzzaman and Ogura, 2009).

A standout example is China, which has seen a significant surge in urban commercial housing prices since 2004. This surge has outstripped the growth rate of urban household incomes, thereby making suitable housing increasingly unattainable for many low- and middle-income households (Zhang, 2015; Li, 2023; Li et al., 2022). The process of rapid urbanization has only heightened the demand for housing in cities, warranting concentrated efforts to address housing conditions for various groups, including low-income individuals, new residents, and young people (Yao et al., 2014; Jin et al., 2023). Recognizing the importance of social welfare policies, China has identified social housing, including affordable housing, as a pivotal solution to tackle housing challenges (Adema et al., 2020).

Notably, the December 2020 Central Economic Work Conference emphasized the significance of affordable housing construction as a measure to alleviate housing pressures in major cities (Li, 2023). During the “14th Five-Year Plan” period, affordable housing has emerged as a central pillar of China’s housing security system, attracting considerable attention in the nation’s housing development initiatives. Amidst the backdrop of the “double carbon” strategy aimed at carbon peak and carbon neutrality, affordable housing, as a government-led initiative, assumes a pivotal role in proactively addressing the national push for promoting green building practices for promoting green building practices (Sales, 2022).

The development of affordable housing in China is characterized by a significant supply-demand imbalance (Torab, 2018). Yang (2014) reported that approximately 30% of urban families were supposed to be eligible for affordable housing, leaving a large proportion of disadvantaged families without guaranteed housing conditions. In the absence of an adequate supply of affordable housing in the market, low-income households often find themselves in the predicament of sacrificing essential needs like food and healthcare to afford rent payments (Anderson et al., 2003). Furthermore, public concerns regarding housing quality have been on the rise (Krieger and Higgins, 2002). As the country progresses in economic development, there is a growing demand for improved environmental standards in housing.

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