Multiple regions optimize affordable housing policies and improve the housing security system

Reporter Zhang Xiangyi

Affordable housing is an important component of China’s housing security system. Against the backdrop of improving the housing security system and optimizing the supply of affordable housing, many regions have recently optimized related policies for affordable housing.

In terms of policy direction, optimizing the methods for sourcing affordable housing is a key focus for various regions.

For example, the Zhuhai Housing and Urban-Rural Development Bureau recently issued the “Management Measures for Affordable Rental Housing in Zhuhai,” which clarifies that affordable rental housing sources are primarily sourced through three methods: new construction, reconstruction, and revitalization of existing stock. In terms of reconstruction, the focus is mainly on transforming idle and underutilized non-residential buildings into affordable rental housing; regarding the revitalization of existing stock, the emphasis is on incorporating eligible existing housing into affordable rental housing for unified use and management.

The “2026 Work Points of the Zhengzhou Housing Security and Real Estate Management Bureau” (hereinafter referred to as “Work Points”) lists “guiding Zhengzhou Urban Development Group, Provincial Railway Construction Investment Group, and districts/counties (cities) to promote the acquisition of existing commercial housing for use as affordable housing” as a major target task for 2026.

Guangzhou has similarly identified existing housing as a source for affordable housing. In the “Several Measures for Supporting High-Quality Urban Renewal and Promoting Fine Spatial Governance in Guangzhou” released by the Guangzhou Planning and Natural Resources Bureau on March 20, “Encouraging the use of existing commercial housing sources to be converted into affordable rental housing” is included in the positive list for adjusting the purposes of existing buildings that do not require planning permission.

“By acquiring existing homes, new homes, or second-hand homes, the essence of supplementing affordable housing sources is to work on the supply side,” said Yan Yuejin, deputy director of the Shanghai E-House Real Estate Research Institute, to a reporter from the Securities Daily. This aligns well with the current direction of affordable housing work and fits the policy approach of balancing existing and new stock.

“It can be said that the supply side of housing security has entered the era of existing stock, or primarily existing stock. The new acquisition of affordable housing mainly relies on revitalizing existing stock, and the existing affordable housing must also be regularly maintained to enhance its match with demand,” believes Li Yujia, chief researcher at the Guangdong Housing Policy Research Center. He argues that sourcing affordable housing from multiple channels, making the location, style, design, and supporting facilities of housing as diverse as possible, can not only improve supply efficiency but also revitalize idle existing resources.

While adjusting the methods for sourcing affordable rental housing, various regions are also optimizing the supply of affordable housing by improving the quality of housing sources.

The “Work Points” released by Zhengzhou clearly state, “Build high-quality affordable housing,” “Improve the construction of supporting living facilities, enhance the professionalism and standardization of operational management, and make affordable housing into ‘good houses.’”

Li Yujia believes that future policies should introduce and implement standards for “good houses” in affordable housing. The demand for whether housing is “good” appears not only in the commercial housing market but also in the field of affordable housing. If it can only meet basic housing conditions but fails to achieve standards of safety, comfort, sustainability, and intelligence, the newly added affordable housing may not be able to achieve effective allocation and sales.

At the same time, adjustments to the full-process management of affordable housing are also underway in some cities.

For instance, starting from March 23, Urumqi officially optimized and adjusted the allocation mechanisms for affordable rental housing and allotted affordable housing, delegating the distribution authority for affordable rental housing and allotted affordable housing to individual housing operation management units, thus discontinuing the previous weekly centralized allocation model.

Regarding the future optimization direction of policies related to affordable housing, Yan Yuejin believes that the “14th Five-Year Plan” outline mentions “optimizing the supply of affordable housing,” “strengthening the full-process management of affordable housing,” and “exploring the orderly conversion and coordinated use of rental-type and sale-type affordable housing sources,” which sends out an important signal. The “rent-to-buy” approach can lower the entry barriers for affordable housing and also help promote market transactions.

Li Yujia believes that in the future, the scope of beneficiaries should be appropriately expanded, moving beyond the focus on low-income and talent groups to include those facing housing difficulties. Anyone experiencing short- to medium-term housing difficulties, as long as they continue to pay individual income tax or social insurance, or are employed locally for a long time, should be included in the scope of support. Additionally, regions should adapt to changing demands for affordable housing from new citizens, young people, and newly employed college graduates, such as the balance of living and working, convenient commuting, and personalized support. Affordable housing should be increased in areas within a one-kilometer radius of the subway, in newly concentrated employment areas or new districts, and within large industrial parks.

(Edited by Wen Jing)

Keywords:

Affordable housing