China is undergoing the largest real-estate bubble in history, and things keep getting weirder and weirder, with the specter of a burst bubble looming overall.
The Rural Development Institute of the Chinese Academy of Social Sciences reports that 25,000,000 rural homes are sitting vacant, accounting for 10.7% of the country’s rural housing stock. Local governments have exacerbated the problem by banning the private sales of rural houses and subsidizing the purchase of urban homes.
The lofty figure is based on a study published Sunday by the Rural Development Institute of the Chinese Academy of Social Sciences, which sampled 140 rural villages in the country to estimate that, nationwide, 10.7% of homes are vacant in such areas. The occupancy issue, according to the study, stems in part from the long-term absence of migrant laborers, who leave their hometowns to pursue employment elsewhere.
25 Million Homes Vacant in Rural China Due to Migrant Workforce [Sixth Tone]
(via Naked Capitalism)
(Image: Graeme Maclean, CC-BY)