China's Housing Crash Erodes Family Wealth Despite 5% Economic Growth

China's Housing Crash Erodes Family Wealth Despite 5% Economic Growth China's economy is facing a stark contradiction: strong headline growth figures are masking a deep crisis for millions of households as a prolonged property market crash destroys family wealth. Official data shows the economy grew by 5% last year, meeting a key government target [53380]. This growth was driven primarily by robust exports of manufactured goods to global markets [53380]. However, this national success story is at odds with the financial reality for ordinary citizens, where a historic slump in real estate values has wiped out a major portion of household savings [53380]. For decades, buying property was the primary way for Chinese families to build and store wealth [9336]. The government is now actively trying to shift the economy away from this dependence on real estate speculation and toward a more balanced model focused on manufacturing and technological innovation [9336][9781]. As a result, Beijing has shown reluctance to launch a major financial rescue for the troubled property sector [9781]. This policy shift means the housing market must adjust without a large-scale central bailout [9781]. The consequence has been sharply falling apartment prices across the country, eroding the core asset for countless families [53380]. The collapse in consumer confidence linked to this wealth destruction is creating a major challenge, leaving the economy reliant on foreign demand while domestic spending remains weak [53380]. The government's new stated priority is fostering "psychological security" and long-term stability by reducing public anxiety over housing debt and promoting job security in new industries [9336]. Yet, the transition is painful. The economy is being pulled in two directions: powered forward by industrial exports but weighed down by a domestic property crash that continues to undermine family finances [53380]. China's Growth Hits 5%, But a Housing Crash Erodes Family Wealth China Shifts Focus from Property to "Peace of Mind" China's Property Slump Persists as Economic Priorities Shift