China Encourages Housing Rentals

China wants more people to rent houses, rather than purchase them. Doing so will help cool the property sector, lead to fewer mortgages and boost economic efficiency. The dangers of excessive real estate investment are clear: it can lead to a financial crisis, a rapidly-growing housing bubble and unaffordable housing in general. An average two-bedroom new apartment in Beijing costs about US$900,000, while the average resident earns approximately US$16,000 per year.