Introduction
In the 1970s and 1980s, China’s housing market was based on a welfare-oriented public housing model, which was largely dominated by the government and public service sectors (Zhao 11). The socialist model was undermined by cases of overcrowding and poor housing conditions. At the same time, the supply of houses could not match the demand for the same(Zhao 11). Consequently, in the 1990s, the Chinese government undertook massive reforms in urban residential planning by selling most of its housing developments at discounted prices and encouraging the private investor to construct houses and substitute its position in the market (Man). Consequently, since then, there has been a significant influx of domestic and international investors in the country’s housing sector.
The transformation that happened in the Chinese property market has seen the country construct twice the number of houses in the United Kingdom (UK) within a decade (2000 -2010). Zhao also estimates that the number of houses developed within this period is equal to the total number of houses in Japan today (11-12). Based on this progress, the Chinese residential market has significantly expanded in size.
This development has been witnessed in different formats, including through an increase in residential floor space per capita and growth in the percentage of people who own homes, which is currently at 80% of the urban population, compared to 20% in the 1980s (Wang 4). This paper demonstrates that residential changes, which have happened in China within the last 20 years, have led to changes in land-use patterns, developmental imbalances between rural and urban regions, and social class differentiation. Evidence of this claim appears in the sections below.
Social Class Differentiation
Since China adopted residential changes in the housing market, there has been an ongoing trend where social classes have become more distinct than ever in China’s history. Some researchers posit that the shift towards market-oriented development has created a class-based movement in the country because people’s housing options are now defined by how much they can afford to pay (Wang 4). Consequently, those within predetermined income brackets have been forced to live together, while those who cannot afford to own a home are also forced to form small housing enclaves within isolated parts of Chinese cities (Marton and Wei 209).
For example, Wang says that most of China’s urban poor live in old housing complexes built by the government in the 1980s, while the rich have moved to newer and better houses located in upmarket residential areas (4-5). The current situation is different from the past where there was no obvious concentration of low-income people in one district. The contrary exists today because different regions and communities are increasingly defined by people’s income potential.
Marton and Wei support the above view by saying that current residential patterns in China are based on socioeconomic classes (210). In other words, the poor have been relegated to the inner cities where they live in housing complexes run by bankrupt enterprises or in traditional housing structures, which have been abandoned by people who have money to live in modern homes. This analysis shows a close relationship between poverty and housing because between 1949 and 1979, the Chinese government was the main institution developing housing properties in the country but today, private developers have assumed this role (Man).
During the first half of the 1990s, the same government sold most of the housing units to tenants who were currently occupying the premises. This move caused a significant increase in the standards of living of most residents who resided in the same housing blocks. Broadly, observers said this development increased the standards of living of most urban dwellers because a majority of them occupied government houses (Man). However, the same policy provides the link between housing and poverty. Concisely, as Wang points out, the housing units were too expensive for people who did not have any connection to state agencies, or who were in the low-income housing group (5-6).
Privatization was also another force that emerged from the government’s policy to withdraw from the housing market. It led to significant increases in rental costs for tenants. For example, in the 1990s, rent in Beijing increased from 0.11 yuan per square meter in 1992 to 1.3 Yuan in 1996 Wang (4-6). Wang claims that the high cost of rent for the urban poor is a problem for this demographic because it leads to the deterioration of their living standards (4).
This outcome is deemed an unfortunate event for China’s urban poor because, besides job security, housing concerns are listed among the top issues affecting city dwellers in China. Therefore, changes in the housing market from the public sector to the private sector have had far-reaching implications on the country’s social and economic development.
Social divisions that are emerging in urban China (because of changes in the housing market) can be best seen in the inner rings of mega-urban regions. In these places, residential housing is diverse because it ranges from row housing (which is popular among low-income communities) to gated communities, which mostly accommodate the country’s affluent people (McGee et al. 209). The latter kind of development is often located near golf courses and country clubs.
Sometimes, the same establishments are located inside the housing developments. Wang has further researched the trend towards the stratification of the Chinese society into different economic enclaves and argued that it has not only segmented the society into different residential communities but also created cultural milieus (5-6). In this regard, he contends that the transformation of the housing market has not only brought together a group of strangers living next to one another but also created a profound social change in contemporary China, which is akin to class distinctions (Wang 5-6).
Land Use Changes
The transformation of China’s housing market in the last two decades has also brought new changes in land use patterns because private developers are increasingly redefining how land is used. For example, most of the new housing developments in the country’s urban areas are almost entirely serviced by motorized transport (McGee et al. 209). These residential reforms have marked a paradigm shift in the urban development patterns of some regions because, in the past, the same areas used to be accessed via non-motorized means of transport. For example, people easily walked to their destinations or used animals to move goods from one place to another.
They no longer do so today. Instead, the emergence of new mega-malls near roads or access routes that service these new housing complexes is gaining pace (McGee et al. 209). There has also been an increasing trend towards the growth and development of industrial estates, which have substituted inner rings that were earmarked for housing units developed for low-income workers (Marton 186).
The lifestyles of many Chinese communities, which have sold their land to pave way for the development and growth of new housing units, have also changed dramatically because of land-use changes in China (Marton and Wei 213). More importantly, agriculture, which used to be their main economic activity, has been replaced with real estate, which is a more lucrative economic venture for the landowners (Marton 186).
The changes in land use have also manifested as problems associated with space deprivation because most new housing complexes built in China have followed a commercial development pattern where contractors are maximizing space for optimum tenancy. Therefore, it is common to find many new high-rise buildings, which have limited space for recreational activities. These kinds of developments are significantly different from traditional types of housing estates, which gave inhabitants enough space for farming and children to play (among other social activities). Marton and Wei define the contemporary type of living as akin to placing people in several “concrete blocks” in the cities (214).
Within these housing complexes, people do not have adequate space for social or recreational purposes. Wang says this problem has not only been witnessed in China but also in other developed societies, such as the US and the UK, which have not only experiencing challenges associated with space deprivation but also reported problems linked with community reconstruction and social segregation (6).
Widening the Gap in Urban Development across Different Regions
One negative outcome associated with urban residential changes in China is the widening gap in urban development across different regions. Most of the housing development programs undertaken in the country have been concentrated in the urban centers, thereby leaving huge sections of the country relatively underdeveloped. According to Man, urbanization in China has seen more than 300 million people migrate from rural areas into urban centers.
Notably, this trend has led to the emergence of a new urban poor class in most major Chinese cities. This trend may be caused by discriminatory policies employed by the Chinese government, such as the exclusion of migrants from the housing development program, which have forced some urban dwellers to live in appalling living conditions. This problem was highlighted in an article by Zhao, which showed that recent changes in housing development patterns in China led to the emergence of a significant proportion of urban poor, which is disadvantaged through institutional exclusion (11-13).
This policy means that millions of migrants living and working in China are left out of the “housing dream” that other people enjoy. Because of this policy, some migrant populations have been forced to live in migrant enclaves or temporary housing structures, such as factory dorms and basements.
Man highlights the extent of this problem by demonstrating that the urban residential changes undertaken in China within the last two decades have mostly been concentrated in city clusters that only cover about 2.8% of the country. Conversely, this statistic means that about 97% of China is devoid of such developments. Consequently, he believes that regional and economic development will worsen in the next few years because of this unequal distribution in development (Man). Based on the inequality in development between China’s rural and urban areas, some experts have proposed the need to have an integrated development framework that would minimize the gap between the two regions (Marton 181-183).
Experts who have tried to draw a link between unemployment and urban poverty in China have researched the relationship between changes in the housing market and varying development standards between China’s urban and rural populations (Wang 4-6). Their studies have shown that regional variations in urban poverty have been associated with differences in family income, employment types, and economic sectors (Wang 4-6). These recommendations have had far-reaching effects on China’s social and economic policy development (especially regarding social welfare provision) (Wang 4-6).
Globally, the literature on urban development and transition in China has been growing yearly. Most of these works of literature have investigated variations in increased levels of material comfort, economic reforms, industrial changes, the cultural transformation of Chinese cities, and regional implications of China’s economic transition (Marton 186). Although this paper demonstrates the existence of significant gaps in the level of development between China’s urban and rural regions, studies by Marton and Wei demonstrate that the transformation of the housing market has generally improved the standards of living of the country’s urban poor (214). Concisely, it has offered residents more housing choices, thereby satisfying different social and economic needs and preferences.
One major gain that has emerged from this progress is an increase in the number of homeowners. It signifies an increase in the overall living conditions of the tenants because researchers have affirmed that China’s transformation of the housing market has improved the quality of living for homeowners compared to tenants (Wang 5). Furthermore, research shows that homeowners are less likely to suffer from the effects of overcrowding compared to those who rent (Man).
Therefore, the transformation of the housing sector has mitigated some of the negative effects of overcrowding in the housing sector, which are highlighted in earlier sections of this report. Nonetheless, it is important to note that tenancy rates are still higher than homeownership rates in China.
Conclusion
Urban residential changes in China have had widespread implications for the society because the change from a socialist development framework in residential housing to the market-oriented system has had a significant influence on patriarchal systems and traditions. This change in housing development patterns has heralded a period characterized by rising individualism, which has been occasioned by a weakened preference for collective living arrangements.
At the same time, there has been an increased liking for extended family residences. These changes have been more profound for affluent urban dwellers, thus creating a strong demand for personal space from the residents. Meanwhile, there has been a rapid increase in rural-to-urban migration, which has led to a soaring population density in urban centers. Evidence shows that these changes are contextual and they may reconfigure the space expectations of China’s urban poor.
Overall, a comparison of the social and cultural effects of China’s housing transformation with other cities shows that although there are some commonalities between the effects of the same transformation with other western cities, the effects of the housing changes in China are different from its western counterparts because of its socialist legacy. The findings of this study provide useful information to policy formulators because they could use them to improve the efficacy of existing laws governing residential housing in China.
Works Cited
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Marton, Andrew, and Wu Wei. “Spaces of Globalization: Institutional Reforms and Spatial Economic Development in the Pudong New Area, Shanghai.” Habitat International, vol. 30, no. 2, 2006, pp. 213-229.
McGee, Terry et al. China’s Urban Space: Development under Market Socialism. Routledge, 2007.
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