1、Gathering Momentum,Gathering Momentum,Moving Toward BrightnessMoving Toward Brightness2023 China Rental Housing ReportDec,2023Key Drivers of Rental Housing in ChinaChina Rental Housing Market Driving Forces Model3|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:JLLYoung peopleMigrant popul

2、ationLater marriage and childbirthShrinking household sizesDriversFavourableDemographicsBarriers to Home OwnershipHome price-to-income ratiosDifference in costs between buying and rentingHome purchase regulationsYoung peopleNew citizens and young people-orientedLand supplyFunding and taxExit mechani

3、smPolicy SupportIncreased Acceptance of RentingExperiences over possessionsCommute timesPursuit of flexible,free,and diverse lifestylesStrong domestic migration and large renter base drive rental housing markets in major cities4|2023 Jones Lang LaSalle IP,Inc.All rights reserved.Source:National Bure

4、au of Statistics,JLL analysisMigrant Population in Tier 1 Cities(2022)Sources of Housing among Urban PopulationSource:Seventh National Population Census,JLL analysisRentalConstructionPurchaseInheritance or giftOthers15 14 10 6 10 8 8 12 40.6%37.8%44.8%67.0%0%10%20%30%40%50%60%70%80%-5 10 15 20 25 30

5、ShanghaiBeijingGuangzhouShenzhenShare of migrant population to total populationPopulation size(million)Migrant Population(LHS)Local Population(LHS)Share of migrant population to total population(RHS)77%39%36%35%26%0%10%20%30%40%50%60%70%80%90%100%ShenzhenGuangzhouShanghaiBeijingNationalHome Price In

6、dex:Price-to-Income Ratios in Major CitiesHomeowning vs.Renting:Monthly Cost Comparison in Major CitiesRenting becomes an attractive and cost-effective alternative amid high home pricesNote:Bubble sizes and numbers indicate different house price-to-income ratios Sources:JLL,National Bureau of Statis