Real Estate Crash Weighs on China’s Economic Growth

The New York Times • January 19, 2026 • business

Key Points:

New home sales in China have fallen to their lowest level in over 15 years, accompanied by a sharp decline in prices for existing apartments, leading to reduced consumer spending among millions of households.
Local governments in China, heavily dependent on real estate revenue, are facing financial difficulties in paying civil servants due to the housing market downturn.
Despite concerns about trade tensions with the U.S., China's trade surplus reached a record $1.19 trillion in 2025, driven by a strong export sector.
Official statistics report steady economic growth at 5 percent for the year, meeting government targets, even as the housing market crisis continues to weigh on the economy.
The economy grew at a 4.9 percent annualized