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Affordable rental homes a key focus

By HOU LIQIANG | China Daily | Updated: 2022-02-14 07:51
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A rental apartment for young people opens in Luoyang, Henan province, on Dec 31. Forty people became the block's first tenants. ZHANG GUANGHUI/FOR CHINA DAILY

Local authorities accelerate efforts following State Council guideline

Many young Chinese people prefer to work in major cities because they offer more job opportunities, but high housing prices often force them to live far from their workplaces, with some facing commutes of over an hour on overcrowded subways.

They may soon be spared that daily grind due to efforts to provide cheap but decent rental apartments near their jobs.

After the General Office of the State Council, China's Cabinet, issued a guideline in July, the country's housing authority and local governments have been making efforts to push the development of affordable rental housing, with young people a major target group.

A new type of government-subsidized rental housing, with units often no larger than 70 square meters, will aim to solve the housing problems of new urban residents, young people and other eligible groups by providing housing at rents lower than the market rate, the guideline said.

In 2019, the Ministry of Housing and Urban-Rural Development launched a pilot rental housing program in 13 cities, including Changsha, capital of Hunan province, and Jinan, capital of Shandong province, that focused on the development of affordable housing.

The guideline included preferential policies such as the simplification of approval procedures and the provision of financial support to help address difficulties the cities encountered in the development process.

Huo Da, a tourist guide in Changsha, was one of the first to benefit from the pilot program, which set no income threshold.

The 28-year-old learned about the program soon after arriving in Changsha from his hometown in Jiangsu province for work. He quickly filed an application, but didn't expect to qualify so soon.

His apartment in a renovated building is located in a bustling downtown area close to many commercial complexes, he said, adding that it's a good location for everyday life and entertainment, with convenient transportation connections.

His apartment has a bedroom and a washroom, and all the tenants in the 99-apartment block have free access to a shared gym, meeting rooms and kitchens.

"The apartment is not big, but it's comfortable, with decorations that appeal to young people," he said, adding he only pays 1,900 yuan ($298) a month in rent.

Many more people are expected to benefit from the program as it is extended to other Chinese cities in line with the State Council guideline.

The Ministry of Housing and Urban-Rural Development says China plans to build 6.5 million government-subsidized rental apartments in 40 major cities by 2025, benefiting 13 million people.

The building of such apartments has gained momentum this year, according to the ministry, with 1.9 million expected to be built, up from about 940,000 last year.

Many local authorities have thrown themselves into action, according to the annual work reports of provincial-level governments. Twenty-one of the 30 work reports made fully or partially public by January vowed to ramp up the development of government-subsidized rental housing for young people.

The program in 40 cities with huge population inflows could also provide impetus to the country's economic growth amid downward pressure caused by the COVID-19 pandemic.

According to a recent report by Shanghai-listed Orient Securities, the program is estimated to involve total investment of 1.3 trillion yuan.

At a news conference last year, Ni Hong, vice-minister of housing and urban-rural development, stressed the role of the program in helping to stabilize China's property market.

The program will further improve the country's housing support system, he said, with expansion set to play a key role in stabilizing market expectations and land and housing prices.

Xinhua contributed to this story.

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