Core Viewpoint - The recent rise in housing prices in some cities does not alleviate the financial burden on the middle class, which continues to face significant economic pressure and potential risks [1]. Group 1: Housing Market Dynamics - The housing market in first-tier cities shows a structural increase, with luxury properties in Shanghai exceeding 200,000 yuan per square meter and some total prices surpassing 100 million yuan [2]. - However, this structural increase contrasts sharply with the declining prices in suburban areas, where prices in regions like Shanghai's Fengxian and Jinshan have dropped by 0.20% [2][4]. - Over 90% of second-hand housing prices in 70 major cities are declining, highlighting a stark divide between the booming first-tier cities and the struggling broader market [2]. Group 2: Financial Strain on the Middle Class - More than 35% of households allocate over half of their monthly income to mortgage repayments, with housing-related expenses accounting for 38.7% of urban household expenditures, significantly above the 30% warning threshold [4]. - The median disposable income for urban households was 12,372 yuan in Q1 2025, with a real income growth of only 1.1% after accounting for a 3.2% CPI increase, leading to 42.3% of families living beyond their means [4]. - The Engel coefficient for 2024 has risen to 32.4%, indicating increased pressure on middle-class families regarding essential living expenses [4]. Group 3: The Illusion of Wealth from Rising Property Prices - Rising property values do not necessarily translate into actual financial benefits for the middle class, as illustrated by a case where a family incurred a net loss of 450,000 yuan after selling their only home [7]. - The real estate market is characterized by a transfer of debt, where purchasing new homes supports local government land finance, and buying second-hand homes transfers the mortgage burden from earlier buyers [7]. - The liquidity of real estate is significantly lower than that of financial assets, with a high number of unsold properties in cities like Shanghai and Chengdu, leading to extended selling periods [7]. Group 4: Strategies for Middle-Class Financial Management - Reducing debt risk is crucial for the middle class, with strategies such as switching from equal principal and interest loans to equal principal loans to alleviate future repayment pressure [8]. - Adjusting consumption habits is essential, with recommended asset allocation rules including keeping mortgage payments below 30% of income and ensuring emergency funds cover 18 months of living expenses [10]. - The psychological impact of housing price fluctuations creates a challenging environment for the middle class, who may feel trapped by rising prices that do not equate to real financial relief [10].