What China’s 22% Vacancy Rate Means For US Real Estate
Q: Will China’s 20% vacancy rate affect things in the US? Bob, New Rochelle, NY
A: China’s vacancy rate is actually higher than 20%, it’s over 22% which is the highest among any country in the world and amounts to over 50 million empty housing units! That certainly looks like a bubble to me. The way China’s 50 million vacant homes could affect us in the US is if there is a panic selloff which would certainly affect markets worldwide and could trigger a recession. US Real estate is affected more than anything else by income, jobs and the economy and a recession would certainly affect housing by reducing demand.
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