Core Insights - The article discusses the dilemma faced by many families regarding whether to buy a house or save money, highlighting a cautious attitude towards real estate investment as indicated by a report showing over 36% of families are conflicted about this decision, an increase of 8 percentage points from the previous year [1] Market Trends - Housing price trends have changed, with the new residential price index in 70 major cities showing a growth rate below 0.2% for six consecutive months in the first half of 2025, marking one of the lowest growth periods in the last decade compared to an average annual growth of 6%-8% from 2010 to 2020 [1][2] - In terms of city classification, first-tier cities saw a slight increase in average prices of 1.8% in the first half of 2025, while second-tier cities remained stable at 0.3%, and third and fourth-tier cities experienced an average decline of 2.6% [2] Financial Considerations - The decision to buy a house or save is influenced by the yield on savings. As of July 2025, the one-year fixed deposit rate was 1.75%, up by 0.25 percentage points from the end of 2024, with the real interest rate turning positive considering a CPI of around 1.5% [3] - The average yield on bank wealth management products reached 3.8% in the first half of 2025, an increase of nearly 0.6 percentage points from the same period in 2024, with over 30% of products expected to yield more than 4%, surpassing the average rental return of approximately 2.3% [3] Rental Market Dynamics - The rental market is maturing, with a year-on-year increase of 18.6% in rental transactions in the first half of 2025, and the proportion of rental population in urban areas reaching 21.7%, up by 2.3 percentage points from 2024 [4] - Satisfaction with rental services has improved, with over 65% of tenants expressing satisfaction, a nearly 20 percentage point increase from five years ago [4] Changing Buyer Sentiment - A shift in purchasing psychology is evident, with 46.3% of surveyed urban residents aged 25-40 indicating they are not considering buying a home at the moment, an increase of 8.7 percentage points from 2024 [7] - The perception that "houses are for living in, not for speculation" has gained traction, with 73.2% of respondents agreeing, a nearly 20 percentage point increase from five years ago [7] Investment Outlook - For existing homeowners, purchasing additional properties requires careful consideration, as the average annual return on investment for second homes has dropped to a historical low of 2.6%, lower than many financial products [8] - The importance of liquidity is emphasized, with families having six months of living expenses showing significantly higher risk resilience [8] Emerging Trends in Housing Preferences - Small apartments are increasingly favored by young buyers, with units under 90 square meters accounting for 45.3% of transactions in the first half of 2025, a 6.8 percentage point increase from 2024 [10] - Educational resources remain a critical factor for homebuyers, with properties in quality school districts showing less price decline compared to surrounding areas [11] - The demand for green and healthy housing is rising, with certified green buildings selling for 5%-8% more than similar properties [11]