The Evolution of Real Estate: From a Pillar of Wealth to a Daily Necessity

The Evolution of Real Estate: From a Pillar of Wealth to a Daily Necessity

In the ever-changing tides of time, the role of real estate is undergoing a silent transformation. As we reflect on the past, we find that houses have long occupied a central position in family asset allocation, serving as a solid fortress for the wealth of countless middle-class families.

In the era of rapid urbanization, the real estate market thrived, with buying a house being not only a purchase of living space but also a seemingly foolproof investment. Housing prices skyrocketed, land values surged, and the wealth effect of demolition and relocation made many people taste the sweetness of real estate appreciation. At that time, houses seemed to possess a special financial magic, with liquidity premiums and bank lending leverage further amplifying this wealth effect, making the real estate market increasingly hot.

However, times have changed, and the current real estate market is vastly different. The government's classification of houses as "big-ticket consumer goods" has marked a significant shift in the investment properties of real estate. With the large-scale entry of subsidized housing into the market, the original housing price monopoly pattern has been broken, and the demolition expectations of "old, broken, and small" houses have disappeared, causing the foundation of sustained housing price increases to waver.

As the urbanization rate exceeds 65% and per capita living space surpasses 40 square meters, residential demand is gradually becoming saturated. Improvement-type demand has become the main force in the market, driven by consumption upgrades and the pursuit of better living experiences rather than expectations of substantial investment returns. This fundamental shift in demand structure has led to a reconstruction of the housing valuation system, with the consumption attributes of real estate becoming increasingly prominent.

Meanwhile, the iteration of social wealth carriers follows historical cyclical patterns. From national treasury bonds in the early days of reform and opening-up to stock subscription certificates in the 1990s and commodity housing in the new century, each era has its unique way of storing wealth. Today, a series of policies, including subsidized housing, property tax expectations, and equal rights for renting and buying, are quietly reshaping the social wealth landscape. Ordinary residential housing is returning to its most basic attribute as a "living tool," while high-quality properties in core areas continue to serve as assets for value storage. This differentiation is not market chaos but rather the value law in action.

In reality, any commodity overly endowed with financial attributes will ultimately succumb to the fate of value regression. Historical examples, such as the 17th-century Dutch tulip bubble, Japan's commercial real estate crisis in the 1980s, and the 2008 US subprime mortgage crisis, were all price illusions fueled by excessive liquidity. Today's soft landing of China's real estate market is undoubtedly a vivid and profound economics lesson for all.

For the vast middle class, the transformation of real estate from an asset to a consumer good is a significant shift that cannot be underestimated. Housing, once the engine of wealth growth, may now become a source of wealth anxiety. Many middle-class families, who have exhausted their savings to buy houses, expected asset appreciation but now face the reality of housing value regression. When houses are no longer a tool for wealth appreciation, the middle class must reassess their asset allocation and seek new paths for wealth growth.

In this era of change, we must maintain a clear understanding, untethered from the fluctuations of housing prices, and learn to reasonably plan our assets and live in the present. After all, the essence of life is not dominated by asset fluctuations but finding stability and happiness in a constantly changing world. Perhaps, when we let go of our obsession with the wealth effect of real estate, we can face life's new challenges and opportunities with a more composed attitude.