Buildings Full of Empty Apartments Pose Problems in China
The promise of fast rising home prices in China has attracted a lot of capital, but not all those investments have panned out: about a fifth of homes in urban areas have been bought and left vacant. "In recent decades, housing prices have risen nearly twice as fast as disposable income, according to Chen, who authored a report on the China’s housing boom in 2014 for the Federal Reserve Bank for St. Louis," Linda Poon reports for CityLab. Chinese investors hoping for high returns have continued to put money into this market. While some fear a bust, others don't see development slowing down as investors think the government will do what it can to avoid a crash.