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

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Our reporter Zhang Xiangyi

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

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

For example, the Zhuhai Housing and Urban-Rural Development Bureau recently issued the “Zhuhai Affordable Rental Housing Management Measures,” which clarifies that the main ways to raise affordable rental housing resources are through new construction, reconstruction, and stock revitalization. In reconstruction, the focus is on converting idle and inefficiently used non-residential buildings into affordable rental housing; in stock revitalization, the main approach is to include qualifying existing housing into the affordable rental housing system for unified use and management.

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

Guangzhou also lists stock housing as a resource channel for raising affordable housing. In the “Guangzhou Support for High-Quality Urban Renewal and Promotion of Fine-Grained Spatial Governance Planning Land Management Measures” issued by the Guangzhou Planning and Natural Resources Bureau on March 20, “encouraging the conversion of stock commercial housing into affordable rental housing” is included in the list of permitted uses for stock buildings without requiring planning approval and under regulatory control.

“By acquiring stock housing, new homes, or second-hand homes to supplement affordable housing resources, the core is to make adjustments on the supply side,” said Yan Yuejin, Deputy Dean of the Shanghai E-House Research Institute, to Securities Daily. This approach aligns well with current policy guidance on affordable housing and supports the policy idea of balancing stock and incremental supply.

“It can be said that the supply side of housing security has entered an era dominated by stock, or an era focused on stock,” Li Yujia, Chief Researcher at Guangdong Housing Policy Research Center, believes. “The main way to increase affordable housing is through revitalizing stock, and existing affordable housing should also be maintained and upgraded regularly to better match demand.” He adds that multi-channel approaches to raising affordable housing can diversify the location, style, design, and supporting facilities of the housing resources, which not only improves supply efficiency but also activates idle stock resources.

Alongside adjusting the methods of raising affordable rental housing, regions are also working to improve the quality of housing to optimize supply.

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

Li Yujia believes that future policies should establish and implement standards for “good homes” in affordable housing. The question of whether housing is “good” is not only relevant 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, it may not effectively facilitate leasing or sales.

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

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

Regarding future directions for policy optimization on 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 the orderly conversion and coordinated use of leasing and sale-type housing resources,” 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 focusing on low-income, low-asset, and talent groups to include those facing housing difficulties in the medium and short term. As long as they pay personal income tax or social security regularly, or are employed long-term locally, they should be included in the scope of support. Additionally, regions should respond to the changing demands of new citizens, young people, and recent university graduates for affordable housing, such as balancing work and residence, convenient commuting, and personalized supporting facilities. In areas within 1 km of subway stations, newly developed employment hubs, or large industrial parks and new districts, the layout of affordable housing should be increased.