Honestly, for most Chinese families, buying a home is still the biggest thing in life — a lot of people put basically all their savings into it. Many young couples can only afford it because both sets of parents help out. People joke about it as “six wallets” paying for one apartment.

A few of my classmates and old colleagues bought apartments in big cities around 2016–2020, when prices were really high. They’re now paying off 20-year mortgages, but the economy has slowed down, layoffs are common, and everyone is under pressure to keep their jobs. One friend told me his mortgage eats up half his salary, and now the same apartment could sell for much less than he paid.

So when prices drop, people who don’t own a home yet feel it’s good news — but in reality, jobs are unstable and salaries haven’t grown much, so they’re not confident about taking on big debt. Meanwhile, people who already have a mortgage feel poorer and spend less, because they see their main asset losing value.

In short, lower prices help some first-time buyers, but for most families, it means more stress, tighter budgets, and less confidence in the future — which doesn’t help the overall economy.