A recent study analyzed by Bloomberg BusinessWeek reveals that fewer than 25% of college-educated, employed professionals under 34 years old own their homes, and of that slim quarter, a vast majority received substantial support from their parents. Of Beijing’s young home owners, a full 25% had their parents buy the home, at the market price, in straight-up cash.
This is not a good sign for class mobility in China, or at least in its capital, as city-living is becoming a luxury in and of itself. Most of the city’s youth live in rented apartments, often with roommates, and many live with family members. Of those who rent, BusinessWeek estimates that they pay, on average, 37% of their monthly income on rent, which leaves hardly enough for constant refills of jian bing (presumably the reason why the young people moved there in the first place).
We’ve written about China’s real estate “bubble” before, and skyrocketing home prices (climbing not because of more people living in the city, but rather because more people are using real estate as a means of investment) is a sign that something has gone awry in the system. But hell, your parents will probably just spot you the next few months’ rent anyways, right?