A "cabbage-priced" house may sound like a dream scene for countless people who aspire to a place to live. And it does mean that most families can more easily afford to buy a house and improve their living conditions. However, behind this obvious benefit, there are many deep-seated economic and social problems.
First, the rapid decline in the real estate market may lead to the decline of multiple industrial chains associated with it. From construction companies, decoration companies, to the home furnishing market, these industries closely related to real estate will be hit hard by the market downturn. At the same time, job opportunities in real estate agents, appraisers, lawyers and other professions will be greatly reduced, leading to an increase in the overall unemployment rate.
More crucially, a large number of loans may become unrecoverable due to the collapse in housing prices. Borrowers may find that the value of their property is much lower than the loan amount, resulting in a phenomenon of "negative equity". This will undoubtedly trigger an increase in non-performing loans from banks and other financial institutions, putting enormous pressure on the entire financial system. This is not just an economic issue, but a potential social risk, as instability in the financial system could trigger wider social discontent and unrest.
For the government, a sharp reduction in real estate taxes means increased pressure to spend on public services and other social benefits. In the face of fiscal shortfalls, governments need to reprioritize, which may lead to reduced investment in certain areas, which will affect the daily lives of citizens.
In addition, society's mentality and values may also change due to the sharp decline in housing prices. In many places, the house is not just a place to live, but a symbol of social status. If the value of a house collapses, this material-based social evaluation system may also be challenged, leading to a redefinition of success and value.
To sum up, the house "cabbage price" seems to be a good thing, but the chain reaction hidden behind it may be far more complex and severe than the positive on the surface. For the long-term stability and development of society, we should not blindly pursue short-term interests, but should think more comprehensively and deeply about the deep meaning behind this change.