Whether domestic housing prices are high or not, all walks of life have different views. Some experts believe that domestic housing prices are not high, and housing prices will continue to rise in the future. Many people said that housing prices are too high, even if they use up all their savings and owe the bank for decades of mortgages, they can barely buy a house. In fact, whether housing prices are high or not, local residents have more say. At present, the ratio of house prices to income in second- and third-tier cities is 20-25, which is far higher than the international ratio of 6-7.
In the eyes of many people, there are many benefits of high housing prices: one is that in the environment of high housing prices, land fiscal revenue will be more and more, and the contribution to local finances will be greater, so that local governments can have more money for infrastructure investment. The other is that high housing prices can bring prosperity to the property market, which can drive the development of dozens of industries upstream and downstream and provide more employment opportunities. At the same time, the boom in the property market has provided support for rapid economic growth.
However, high housing prices can only have a social and economic impact in the short term, and in the long run, the disadvantages of high housing prices are also obvious, even much more serious than people expect, mainly the following five major social and economic problems, which cannot be avoided. Let's find out:
First, high housing prices have led to weaker consumer demand
With housing prices now too high, many families are draining all their savings and owing decades of mortgage to the bank. A large part of the monthly income has to be repaid the mortgage, and the remaining disposable income can only barely maintain the basic life. In this case, the spending power of the loan buyer is seriously weakened. It is difficult to expect home-buying households to boost consumption, and then promote economic growth through consumption.
Second, the real economy is getting tougher and harder
There are two main reasons why the domestic real economy is struggling: on the one hand, due to the high housing prices, a large amount of capital flows to the real estate market, and the real economy will be in a downturn for a long time due to the lack of capital inflow; On the other hand, high housing prices will inevitably lead to higher rents, which will lead to brick-and-mortar stores losing out in competition with e-commerce due to rising costs. Moreover, high rents have also seriously dampened people's enthusiasm for starting businesses. Once the confidence in investing in entrepreneurship declines, the number of jobs that will be provided to society will also be significantly reduced.
Third, high housing prices will widen the gap between the rich and the poor in society
A few years ago, some speculators gritted their teeth and took out loans to buy a few properties, and now even if the house price has fallen to a certain extent, these people have achieved financial freedom. Families who have not been buying a house for a long time, or who have no money to buy a house, are becoming more and more difficult to buy a house. In this way, the gap between the rich and the poor in society will gradually widen. A few have a lot of wealth, while the majority either don't have much savings or are in debt. The widening gap between the rich and the poor in society is not conducive to social harmony and stability, nor is it conducive to the healthy development of the economy.
Fourth, high housing prices will make young people lose hope
In the face of the current high housing prices, young people will have two situations: one is that after taking out a loan to buy a house, they must live cautiously, dare not resign, dare not start a business, and take the initiative to work overtime, hoping to reduce the pressure of the mortgage. The other is that due to high housing prices, many young people cannot afford to buy a house, so they can only choose to lie flat and live a life of not getting married and not having children. Now that the marriage rate and fertility rate are getting lower and lower, high housing prices are to blame.
Fifth, it will miss the opportunity for economic structural transformation
If housing prices remain high, they will be heavily dependent on the property market. In particular, those cities with a single industrial structure are more dependent on real estate. In this way, opportunities for structural transformation of the economy are often missed. In the future, we should get rid of the over-dependence on real estate and devote more energy to the transformation of high-end manufacturing and high-tech industries. Only when the economy gradually gets rid of its over-dependence on the real estate industry can it enter the track of sustainable development.