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

Reporter Zhang Xiangyi

Affordable housing is an important part of China’s housing security system. In the context of improving the housing security system and optimizing the supply of affordable housing policies, many regions have recently optimized related policies.

In terms of policy direction, optimizing the methods of raising affordable housing resources is a key focus for all areas.

For example, the Zhuhai Housing and Urban-Rural Development Bureau recently issued the “Zhuhai Affordable Rental Housing Management Measures,” which clarify that the main ways to acquire affordable rental housing are through new construction, reconstruction, and revitalization of existing stock. In reconstruction, the focus is on converting idle and inefficient non-residential buildings into affordable rental housing; for stock utilization, eligible existing properties are incorporated into affordable rental housing for unified use and management.

The “Zhengzhou Housing Security and Real Estate Management Bureau 2026 Work Highlights” (hereinafter referred to as the “Work Highlights”) sets “guiding Zhengzhou Chengtou Group, Provincial Railway Construction Investment Group, and district/city authorities to promote the acquisition of existing commercial housing for use as affordable housing” as a major goal for 2026.

Guangzhou also lists existing housing as a source for affordable housing supply. In the “Guangzhou City Support for High-Quality Urban Renewal and Promoting Fine-Grained Spatial Governance Planning Land Management Measures” released by the Guangzhou Planning and Natural Resources Bureau on March 20, “encouraging the conversion of stock commercial housing into affordable rental housing” is included as a positive list for adjusting the use of existing buildings without requiring planning permission and related control requirements.

“By acquiring existing housing, new homes, or second-hand homes, to supplement affordable housing resources is essentially an effort on the supply side,” said Yan Yuejin, Deputy Director of the Shanghai E-House Research Institute, to Securities Daily. This approach aligns well with current policies on affordable housing and emphasizes balancing stock and incremental development.

“It can be said that the supply side of housing security has entered an era dominated by stock, or an era of stock first,” said Li Yujia, Chief Researcher at the Guangdong Housing Policy Research Center. “The main way to increase affordable housing is through revitalizing existing stock, which also requires regular maintenance and improving matching with demand.” Diversifying the sources of affordable housing in terms of location, style, design, and supporting facilities not only improves supply efficiency but also activates idle existing resources.

While adjusting the methods of raising affordable rental housing, regions are also improving the quality of housing to optimize supply.

The “Work Highlights” issued by Zhengzhou clearly states, “Build high-quality affordable housing,” “Improve supporting facilities,” and “Enhance operational management to be professional and standardized, making affordable housing ‘good homes.’”

Li Yujia believes that future policies should establish and implement standards for “good homes” in affordable housing. The demand for “good housing” is not only present in the commercial housing market but also in the affordable housing sector. If new affordable housing only meets basic living conditions but fails to reach standards of safety, comfort, green features, and smart technology, effective allocation and sale may not be achievable.

At the same time, some cities are also adjusting the entire management process of affordable housing.

For example, starting March 23, Urumqi officially optimized and adjusted the allocation and sale mechanisms for affordable rental housing and sale-type affordable housing, delegating the authority to distribute these housing types to property management units and stopping the previous weekly centralized distribution mode.

Regarding future policy directions for optimizing affordable housing, Yan Yuejin believes that the “14th Five-Year Plan” outline mentions “optimizing the supply of affordable housing,” “strengthening full-process management,” and “exploring orderly conversion and coordinated use of rental and sale-type affordable housing,” which send important signals. The “rent first, buy later” approach can lower entry barriers for residents and promote market transactions.

Li Yujia suggests that in the future, the scope of beneficiaries should be expanded appropriately, from mainly low-income, low-income, and talent groups to include those facing housing difficulties in the medium and short term. Anyone with ongoing tax or social security payments or long-term employment locally should be included in the scope of support. Additionally, regions should respond to the changing needs of new citizens, young people, and recent college graduates, such as balancing work and residence, convenient commuting, and personalized supporting facilities. In areas within 1 km of subway stations, newly developed employment zones or districts, large industrial parks, etc., the layout of affordable housing should be increased.