China will supply 6.5 million new low-cost rental housing in 40 major cities in 2021-2025, aiming to meet rising demand in major cities as their populations grow.

An official from the Ministry of Housing and Urban-Rural Development Pan Wei said at a news briefing in Beijing that it will ease living difficulties for 13 million young people.

China has stepped up efforts to address housing issues faced by young people particularly, amid soaring home prices in large cities, under President Xi Jinping’s “common prosperity” plan.

The official said that the development push for affordable rental housing is focusing on cities with large population inflows and high home prices.

Tier-one cities like Beijing and Shanghai will supply a total of 1.87 million units of low-cost rental housing in 2021-2025, according to Reuters’ calculations based on plans published by cities.

He said that In 2021, 936,000 units were offered in 40 cities, housing 2 million young people.

China’s property downturn is expected to continue in 2022, with monthly new home prices declining and a liquidity crisis that has engulfed some major property developers.

Chinese regulators are marginally easing curbs on the property sector to prevent a hard landing and to meet the demand from non-speculative home buyers.

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