Second, high housing prices have distorted many people's outlook on life and values. Because of the high housing prices, many people want to buy a house and can only choose to borrow money from relatives, friends and banks. Debt is a social phenomenon. It was hard to imagine such a thing in the traditional concept of China people. The rapid rise in housing prices has caused the book wealth of many early buyers to increase rapidly, and it has been happening that it is better to borrow money to invest in buying a house than to start a business. Under such circumstances, many people's previous concept of getting rich through hard work has been distorted, and they no longer go to work in a down-to-earth manner, but choose to speculate in real estate to make quick money.
Third, high housing prices have become the best contraceptive. Undeniably, the decline of birth rate in China in recent years has something to do with high housing prices. Under high housing prices, it often takes effort to buy a house. In order to struggle, many young people choose not to have children, and try to have fewer or no children. It can be said that high housing prices have hindered the marriage and childbirth of contemporary youth to a certain extent, affected the normal reproduction of the population and affected the happiness of many people.
Fourth, high housing prices have kidnapped many people's lives and reduced the purchasing power of residents. Under high housing prices, for ordinary people, buying a house often needs to exhaust decades of savings or even empty the pockets of two generations. In addition to the down payment, it is often necessary to repay the mortgage to the bank every month. In order to buy a house, many people have to tighten their belts, which greatly reduces their living standards and purchasing power. From this perspective, the poor business of physical stores in recent years has a certain relationship with high housing prices.
Fifth, high housing prices have also increased the burden on enterprises. High housing prices tend to push up rents. For enterprises, the increase of rent, including land rent, will increase the operating costs of enterprises. In the case of high housing prices, employees often need the company to pay higher remuneration in order to buy a house, which leads to an increase in labor costs. For enterprises, it is necessary to bear the pain of housing prices and the injury of land prices. Many investment and development behaviors of enterprises will be restricted by the sharp rise in house prices, thus affecting the sustainable development of enterprises.
Finally, high housing prices will distort the allocation of social resources. Under the market economy, the whole social resources will be rationally adjusted and allocated. However, high housing prices tend to distort this. High housing prices attract a lot of money to the real estate industry rather than the real economy. This is also the reason why the real estate market needs regulation.