China's ghost cities struggle with high vacancy rates

China's economy is facing challenges with numerous empty buildings known as "ghost cities." These cities were built during a construction boom as the country rapidly developed its economy. Many residential and commercial projects were completed, but they failed to attract enough residents. An estimated 65 million to 80 million homes across China remain unoccupied. Investors often buy multiple properties, leading to a real estate bubble. When property prices fell, many of these homes stayed empty. However, some ghost cities, like the Kangbashi District in Inner Mongolia, have started to gain residents and students. Still, overall population decline in China limits future growth in these areas. Some developments have not fared as well. The Yujiapu Financial District in Tianjin, which was meant to rival Manhattan, has remained mostly empty despite being fully constructed. It serves as a warning about building too much without enough demand. The Xiong'an New Area in Hebei province is another ongoing project with delays. While it aims to be a technological hub, its empty streets highlight existing problems rather than abandonment. Experts believe the lack of jobs and essential services in these areas prevents them from thriving. Sarah Williams, an urban planning professor, notes that there's a disconnect between investment and actual living needs. The existence of smaller ghost cities poses a risk to China's housing market and could harm investors who may not see returns on their property investments.