Core Insights - The government work report emphasizes the need for high-quality housing that is safe, comfortable, green, and smart, aligning with the growing demand from the public [1] - The "2025 China Urban Long-term Rental Market Development Blue Book" highlights the importance of optimizing existing stock and improving quality as key strategies to address supply-demand imbalances and activate market potential [1] - Institutionalization is viewed as a definitive choice for the sustainable development of the housing rental market [1] Market Trends - The rental population in China is expanding, with nearly 40 million renters in the four major first-tier cities, accounting for almost 50% of the rental market [2] - The demographic of renters is shifting, with individuals aged 35 and above making up over 35% of the rental population, an increase of 4.9 percentage points since 2021 [2] - There is a growing demand for improved living conditions, with over 40% of renters willing to increase their budget for better basic renovations [2] Supply-Side Challenges - The majority of rental properties (over 90%) are owned by individual landlords, with more than 50% of these properties being over 10 years old [3] - Common issues faced by landlords include long vacancy periods, non-compliance of intermediary platforms, and insufficient rental income [3] - The market is experiencing a mismatch between the quality of available housing and the rising expectations of renters, leading to a need for significant upgrades to over 60 million potential rental units [2][3] Institutional Development - The market share of institutional long-term rental housing is steadily increasing, with the top 30 companies in this sector managing a total of 1.226 million units [3] - The government is actively promoting the development of affordable rental housing through financial support, tax incentives, and land supply, particularly encouraging the involvement of long-term rental institutions [3]