China's persistent real estate bubble signifies a broader failure of its economic model. High housing prices have long burdened the younger generation, making home ownership increasingly unaffordable, particularly in major cities. Although housing prices have been declining since 2021, the anticipated benefits, such as increased birth rates and consumption, have not materialized. The collapse of the real estate bubble has exposed a lack of a robust alternative model, as the previous land finance system allowed people to gain from rising property values. Under Xi Jinping's new economic focus on high-tech industries, ordinary citizens struggle to participate and benefit. The shift to a high-tech cycle has not compensated for the loss of wealth from real estate, leaving average income levels low and highlighting the gap between per capita GDP and actual disposable income.

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