Rougly Draft (Based on the Rough Outline)
Though often dismissed as nothing more than the buying and selling of property, the real estate market plays an important role in a nation's society. In China's case, the real estate market is a huge driving force behind its growth as a nation. Not only does it provide an investment opportunity for middle-upper class members, but it also gives the populace a chance to demand better housing. That being said, it is easy to see that the real estate market has become a popular investment for Chinese buyers/renters in both China and the U.S., resulting in an increase in Chinese buyers in the U.S. real estate market. This is due in part to the Chinese economy's growth slowing down in recent years, the growing issue of the Chinese property bubble which has the potential to wreck the Chinese economy, and the opportunities available in the U.S.
In recent years, China has climbed its way up the economic power ladder, now situated in the Number Two spot. In other words, China is now considered an economic superpower. With a booming industry, China's GDP was growing at staggering double-digit rates, but those numbers started to come to a simmer, now registering in the single-digit zone (i.e. 7.5%). With the economic growth slowing down, investment in the stock market is considered riskier. As a result, many Chinese investors have turned to the real estate market, which has a lot of potential. However, this opportunity has been rendered risky as well due to what is now known as China's property bubble.
As it became a more popular investment option, the real estate market has become a powerful market. But as always, there are two sides to every story. When looking at the lower class, which is, for discussion's sake, dominantly comprised of college graduates who have yet to settle and/or get a stable career and people who have lower-wage jobs (again, this is definitely more complex than I am currently stating), one can see that the living conditions are, more often than not, mediocre at best. The size of apartments are cramped and contain low quality construction. However, this is really the only convenient living option because better housing conditions are only available to people who have more money at their disposal. As a result, many of these people are demanding change: better housing for the common people. Enter middle-upper class investors. This poses as a great investment opportunity because there is a huge demand for better housing, therefore, construction needs to be done. In other words, a lot can be gained from investing in real estate construction projects. However, the new buildings and apartment complexes that have been established are much nicer than what is the norm, but they are still too expensive for the demanding people to rent. As a result, no one is moving into these new trendy complexes, causing the creation of ghost cities. At this point, China is in a pickle: the government wants to keep its people happy so that it can stay in power, so it continues to allow people to invest in the real estate market, causing the creation of more and more ghost cities. If China wants to stop the construction of these cities, it will have to bite a huge bullet and allow the inflated real estate market to pop, a move that can wreak serious havoc nationwide.
When looking at other options, the U.S. real estate market poses as a nice choice. For lower class citizens, the U.S. has plenty of opportunities that come with making the move to the U.S. Plus, the real estate in the U.S. market is more proportionate to its price. In other words, prices are not inflated on lower quality and/or small, cramped living spaces. When moving from China, individuals and families look at what opportunities are available to them, i.e. jobs and education.
In recent years, China has climbed its way up the economic power ladder, now situated in the Number Two spot. In other words, China is now considered an economic superpower. With a booming industry, China's GDP was growing at staggering double-digit rates, but those numbers started to come to a simmer, now registering in the single-digit zone (i.e. 7.5%). With the economic growth slowing down, investment in the stock market is considered riskier. As a result, many Chinese investors have turned to the real estate market, which has a lot of potential. However, this opportunity has been rendered risky as well due to what is now known as China's property bubble.
As it became a more popular investment option, the real estate market has become a powerful market. But as always, there are two sides to every story. When looking at the lower class, which is, for discussion's sake, dominantly comprised of college graduates who have yet to settle and/or get a stable career and people who have lower-wage jobs (again, this is definitely more complex than I am currently stating), one can see that the living conditions are, more often than not, mediocre at best. The size of apartments are cramped and contain low quality construction. However, this is really the only convenient living option because better housing conditions are only available to people who have more money at their disposal. As a result, many of these people are demanding change: better housing for the common people. Enter middle-upper class investors. This poses as a great investment opportunity because there is a huge demand for better housing, therefore, construction needs to be done. In other words, a lot can be gained from investing in real estate construction projects. However, the new buildings and apartment complexes that have been established are much nicer than what is the norm, but they are still too expensive for the demanding people to rent. As a result, no one is moving into these new trendy complexes, causing the creation of ghost cities. At this point, China is in a pickle: the government wants to keep its people happy so that it can stay in power, so it continues to allow people to invest in the real estate market, causing the creation of more and more ghost cities. If China wants to stop the construction of these cities, it will have to bite a huge bullet and allow the inflated real estate market to pop, a move that can wreak serious havoc nationwide.
When looking at other options, the U.S. real estate market poses as a nice choice. For lower class citizens, the U.S. has plenty of opportunities that come with making the move to the U.S. Plus, the real estate in the U.S. market is more proportionate to its price. In other words, prices are not inflated on lower quality and/or small, cramped living spaces. When moving from China, individuals and families look at what opportunities are available to them, i.e. jobs and education.