China’s Real Estate Crisis

Since 2021, China’s real estate market has experienced one of its most severe downturns in decades. Home prices have fallen nearly 25% over roughly four years, eroding household wealth, pressuring developers, and creating a significant housing oversupply. The decline has been driven by years of aggressive construction, high levels of developer debt, and weakening demand as consumer confidence in the property market deteriorated. The crisis has become a major challenge for China’s economy, given the outsized role real estate has historically played in household wealth and economic growth. 

Source: Bank for International Settlements via FRED®; 2010=100

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.