Housing Prices Forcing Younger Generation out into Chinese Streets

One of the major issues facing the young generation nowadays in the cities of China is the high cost of housing. In a report from news.asiaone.com, one of the clearest examples of this phenomenon is in Shenzhen, China, where the residential property market is causing grave concern to many.

The Shenzhen housing market is red hot, as the demand for new housing has increased as the city continues in its economic development. Alongside this is the rental sector trying to cash in on the influx of wealth into the city, where rental rates increase at a whim's notice, pricing out young people eager to work in the economic processing zones in the city.

Just this May 2015, the average per square meter rental rate in the city hit RMB6.66, which is a 16.35 percent increase from the previous year. This was observed by Shenzhen's Centaline Property Research Center. Furthermore, the think tank reported that the most expensive district is Futian, which is located in the southern province of Guangdong. Rent rates per square meter in Futian district is at RMB73.6.

One real estate agent in the area observed, "It is very common for property owners to raise rents frequently. In this market, you do not know the final price until you sign the lease.

In other cities, such as Beijing, many low to middle income class individuals have been forced to rent underground. In a report from businessinsider.com, many of these individuals and their families have been forced to live in windowless apartments under the affluent buildings, forced to share a tepid bathroom in basements throughout the city. These inhabitants have been dubbed as 'the rat race", the clear sign that the country's housing market has gone beyond the control of the government.

There is no end in sight, as home prices in Beijing have risen by 16 percent per year, with rental rates following close behind with 12 percent increases per year. In the end, the younger generation is left to suffer in inhospitable conditions right within the areas of supposed economic wealth and prosperity.