Chengdu severely cracks down on illegal activities such as driving up housing prices. What harm will driving up housing prices have to society?

Personally, I believe that driving up housing prices will cause great harm to society. It will lose the system of regional checks and balances, and there will be no competition. There will only be constant price increases. In addition, real estate speculation is an important means. Raising housing prices will cause social values, social psychology, and social behavior to lose the ability to reasonably defend the truth. For example, three generations of savings provide a down payment for one child, as well as a bank loan for thirty years. Let’s analyze it in detail and tell you about it.

1. Raising housing prices puts pressure on the development of other industries

The development of every industry requires the support of funds, but funds are inherently profit-seeking and only pursue profits. High housing prices will inevitably make the real estate industry and real estate speculators become the most profitable groups, and funds will continue to flow into the real estate industry. Other industries, such as the technology industry, will receive very limited financial support, making it difficult to develop and compete internationally. will lose its advantage.

2. Raising housing prices puts pressure on residents’ consumption

To continue to develop and expand, the commercial society needs to form a cycle. The manufactured goods pass through the circulation link and enter the consumer market. Demand will directly determine whether the supply side is prosperous. When everyone's wealth is tied up in houses, where will there be money for consumption? The decline in residents' consumption power will lead to a decline in total social demand and will inevitably affect economic growth.

3. Raising up housing prices overdrafts the creativity of the people

The development of the national economy is inseparable from everyone’s struggle. If everyone is full of fighting spirit, they will be extremely creative. Activate everyone's potential without huge burdens. However, high housing prices will make the ultimate goal of most people is to buy a house and then spend their whole life paying off the loan. Creativity and imagination will be collectively suppressed, which is not conducive to national innovation.

4. Driving up housing prices will accumulate risks of bubble push-up

Continuous rise in housing prices will cause an imbalance in the economic structure and accumulate huge economic risks. The rise in housing prices has brought about the continuous growth of the real estate market value. On the surface, the wealth of homeowners has indeed increased, but these increased wealth are only virtual and cannot withstand the blow. Once the bubble bursts, it will cause A strong impact on the entire macroeconomy.

Therefore, the harm of driving up housing prices is very obvious. To drive up housing prices means that the housing price-to-income ratio is too high. According to international standards, a housing price-to-income ratio of 3 to 4 times is an affordable range, and the housing price-to-income ratio in Beijing, my country: 33.2 times, Shanghai’s housing price to income ratio: 31.9 times, Shenzhen’s housing price to income ratio: 33.5 times. In second-tier cities such as Hangzhou, Qingdao and Nanjing, the house price-to-income ratios in these cities are also as high as 15.7 times, 13.2 times and 18.3 times respectively.