Housing Production and the Structural Transformation of China’s Real Estate Development Industry

Abstract: This study examines the relationship between housing production and the structural transformations that have taken place in China’s real estate development industry. It first identifies how the real estate development industry has changed since the early 2000s and what factors were driving those changes. It shows that the industry was becoming increasingly concentrated prior to the COVID-19 pandemic, with large firms accounting for a growing share of the country’s housing production. Yet an empirical analysis of 35 major Chinese cities shows that local housing production remained largely decentralized, a result of China’s rapidly rising land cost that discouraged local industry concentration. The study then discusses what these findings mean for the Chinese housing markets, with particular attention to how the pandemic has exposed the risks associated with China’s real estate industry organization.

About the Speaker:

Lan Deng is a professor of urban and regional planning at the University of Michigan. She has been studying housing and real estate development in both China and the U.S. Her research examines the different types of interventions the two countries have developed to provide decent housing and quality neighborhoods for their residents. Professor Deng recently served as the Associate Director for the Lieberthal-Rogel Center for Chinese Studies and is currently an editor for the international journal of Housing Studies. She also co-founded the Collective for Equitable Housing initiative at the University of Michigan. Professor Deng holds a Ph.D. in city and regional planning from the University of California, Berkeley, and an M.S. and B.S. from Peking University, China.