The Story of China's Ghost Cities and Its 65 Million Empty Homes (2024)

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There are about 687 cities in China, and the real-estate sector accounts for a whopping 29% of the country’s total GDP. However, the Chinese real estate market has also been grabbing a lot of media attention lately, due to the $300 billion Evergrande debt crisis, but this is not the only big problem the housing market in China is facing.

A recent report reveals that about 20% of the total urban housing properties in China — around 65 million properties — are vacant. This 20% includes large sections of cities like Tianduch*eng, Thames Town, Binhai, and many others which span across hundreds of square kilometers but have far more empty buildings than occupied ones. Such "ghost cities" in China have well-connected roads, infrastructure, skyscrapers, and a variety of public spaces, but are vastly underpopulated and have vast areas that are completely without residents.

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How did China become a land of ghost cities?

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Real estate was once a sector where investment was considered safe and profitable in China. Even the Chinese government encouraged investment in property because, for decades, the real estate market, and its more or less continuously rising prices, has been a key driver in increasing the country’s wealth, as well as household income.

The communist government accumulates sales revenues worth billions of dollars from land sales and the earnings of the property market, and the reason behind this real estate-driven economy lies in the country’s constitution. According to the Chinese constitution, all the land in China is owned by the state, so when developers want to build on a piece of land, they have to lease it from the government, often by participating in local land auctions.

Another reason for the previous uncontrolled growth of the real estate market in China is that, compared to the people living in the U.S. and Europe, far fewer Chinese citizens invest in the stock market. In the U.S., around 52% of the U.S. population own stocks, and around 65% own property. While in China, only around 7% of the population own stocks, but around 90% are homeowners. This includes70% of millennials,with many planning on buying additional investment properties. This speculation in investment property is also why real-estate holdings in China account for a big share of total household wealth. Around70% of household assetsare held in real estate.

The extent of real estate development that occurred in the country can be visualized from the fact that the amount of concrete used by the US in the entire 20th century is less than what China exhausted only in the three years between 2010-2013.

For many years, the bubble in the Chinese housing market led to rising property prices and developers scrambled to build ever-more units. But demand for units has now shrunk, due to a number of factors, includingincreasing unaffordability of homes, an aging population, and slowing population growth.

The incredible amount of public interest in real estate generated a steady stream of wealth for the government and significantly contributed to the rising number of homeowners in China. However, this also led to the existence of several ghost cities and towns that emerged as a result of uncontrolled urbanization and construction activities in the country.

Each year, a total of around 3 million homes are built in Europe and the US, but China has been constructing more than 10 million residential units annually. Most of the people in China already own property, so they don’t need a new place to live, but many of them continue to buy the newly developed real estate as investments.

According to experts, sometimes these sold-out houses, buildings, neighborhoods, and even entire cities remain vacant for years, due to a supply-demand imbalance (also believed to be one of the reasons for the Evergrande crisis) caused by excessive urbanization in China. A report reveals that there could be as many as 50 ghost cities in China at present.

Unlike parts of the US and Japan, where unoccupied homes in various states of abandonment and decay have earned cities and regions the titles of "ghost towns," China's are different. They're not abandoned, but rather unoccupied.

Some of the famous ghost cities of China

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The real estate culture in China not only escalated infrastructure development but also brought drastic changes in population distribution. According to a report from the World Bank, more than 60% of China’s current 1.4 billion citizens, now reside in cities. However, there are many cities in China that still await people:

  • Tianduch*eng - the Paris of China

Popular among couples for wedding shoots, the city of Tianduch*eng, located about two hours west of Shanghai, was constructed to resemble a miniature Paris. Built to support a population of 10,000, the town includes a 300-foot (91 m) tall Eiffel tower, grey Parisian facades, cobblestoned streets, and Renaissance fountains.

The Story of China's Ghost Cities and Its 65 Million Empty Homes (3)

Built in 2007, by 2013, the city had only 2000 residents and at that time, it was being referred to as a ghost town. However, recent reports reveal that at present, there are more than 30,000 people living in Tianduch*eng, and the city population is witnessing an upward trend.

  • Ordos - a doomed metropolis?

Located in the Inner Mongolian region, Kangbashi district ofthe prefecture-level city of Ordos was built to house 300,000 residents. But for many years, only around 2,000 people lived here and much of the area gave off the vibes of a large and vacant post-apocalyptic world. This ghost city has also been featured in the famous photo series "Ordos - A Failed Utopia" and "Unborn Cities".

According to a report, in the past few years, the Chinese government has moved some of the country’s top education institutes (including both schools and universities) to Kangbashi. Becauseregulations require parents who want to send children to particular schools toown a homewithin the district, the area has since been flooded with new residents, as many students and their families are now moving to Ordos for quality education.

  • Tonghui Town - the abandoned Switzerland of China

Built to attract tourists, the architectural design of Tonghui Town seems to be taken from the streets and houses in Switzerland and Italy. The town is not a "town" but a European-style bar street located in the Chaoyang district of Beijing. It incorporates various European-style restaurants, watchtowers, bars, and other structures.

Unfortunately, due to poor public reception, the "town" never took off —joining an estimated1,600 other unprofitable themeparksin China. Most of the buildings were subsequently abandoned.

  • Thames Town - Shanghai’s London

One of the few places in Asia where you can find London’s signature red telephone booths, English-style buildings, and statues of Harry Potter and James Bond, is Thames Town. Built in the Songjiang District ofChina in 2006, just 24.8 miles (40 km) from Shanghai, this London-look alike locality has cobblestoned streets, a village green, Edwardian town homes surrounded by neat privet hedges, and white stucco Victorian terraces. There's also a mock-Tudor pub, and a fish-and-chip shop, along withnumerous other commercial and residential properties, most of them now vacant.

Two billion yuan (about $330 million) was spent over three years to create this piece of Merrie Olde England in China.

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In the beginning, properties in Thames town were selling fast, but most are purchased as investment properties and were never occupied. Soon,restaurants were closed and the whole place became a vacant property investment hub.

  • Yujiapu - an empty Manhattan in Binhai

Financial districts like Yujiapu and Xiangluowan were built in Binhai to serve as new economic hubs in the North China region. Both regions have large and fully developed government headquarters, shopping malls, high-rise skyscrapers, and every other kind of infrastructure that is required to support a fast-paced economy.

Unfortunately, despite this much development, more than 10 years have passed since the construction was completed, but the occupancy rates in Yujiapu and Xiangluowan are still low enough to label them as ghost towns.

The Evergrande crisis and future of real-estate in China

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Evergrande is one of the top two real estate companies in China, and it recently ranked at 122nd position among the world’s top Fortune 500 companies. As of December 2020, the Evergrande Group had 123,276 employees and also owned 139,614 acres (565 million square meters) of land in China. However, the company is currently facing a cash crunch, which is believed to have resulted from its risky business model, which relied on short term debt, and the decline in real estate sales during the lockdown.

Evergrande’s model worked as long as it could keep building and selling at an inexorable rate. The company would borrow to buy land, get homeowners to buy off the plans, and then borrow again to start another project. Behind the rapid growth, a big interest bill was mounting. By July 2020, the company's liabilities had reached 86 percent of all of its assets and the group turned increasingly to short-term lending with high interest rates.

In September 2021, the company missed an$83.5 million bond payment, and since then speculations are going on that due to its thumping $300 billion debt, Evergrande may fall soon, an event some economists worry could lead to a severe economic downturn in China.

While the Chinese government has already ordered local authorities to stay prepared for the situation that could arise after Evergrande’s collapse, real estate sales in China have already slowed down.

The Evergrande liquidity problem has revealed the big supply-demand gap in China’s housing market. Many experts believe that if Evergrande falls, it may not bring a global economic crisis (like the one that followed after the collapse of Lehman Brothers in 2008), but it could give a severe blow to other property companies in China and affect the country's thriving real estate culture.

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The Story of China's Ghost Cities and Its 65 Million Empty Homes (2024)

FAQs

What is the truth about China's ghost cities why China is building empty cities? ›

Ghost Cities are vacant neighborhoods and sometimes whole cities that were built but were never inhabited. Their existence is a physical manifestation of Chinese overdevelopment in real estate and the dependence on housing as an investment strategy.

Does China still have ghost cities? ›

The phrase “ghost city” might imply a city once full of life and now abandoned. But China's ghost cities are brand new, and their high-rises never populated. Many had remained that way for years, byproducts of rapid economic growth that continue to plague the nation's urban planning strategy.

How many ghost cities has China built? ›

There are currently as many as 50 ghost cities and 64 million empty apartments across the country. Building a city sounds easy after looking at the pictures of tall apartments, commercial buildings and modern architecture.

What city built in China that is empty? ›

Ordos Kangbashi is often seen as one of the first and most prominent examples of the international Chinese ghost city phenomenon and fascination. Some journalists have pointed to the Ordos Kangbashi ghost city stories as an example of media hastily and often misinformed reporting of developments in China.

Why is China demolishing unfinished buildings? ›

By opting for such an aggressive urban development model and after massive quantities of debt-fueled construction, the country is now home to many uninhabited buildings and “ghost cities”, leaving the developers in insurmountable debt. While some of these “ghost neighbourhoods” found occupants later on.

What are the reasons for ghost cities? ›

Factors leading to the abandonment of towns include depleted natural resources, economic activity shifting elsewhere, railroads and roads bypassing or no longer accessing the town, human intervention, disasters, massacres, wars, and the shifting of politics or fall of empires.

Does the US have ghost cities? ›

Perfectly (or near perfectly) preserved relics of our past can be found around the nation. As The New York Times reported, some 3,800 ghost towns exist in America, mostly abandoned between the 19th and 20th centuries for greener pastures and big city dreams.

Are there ghost towns in the US? ›

Now, many have been untouched for over a hundred years (yet some still have a ton of historic buildings somehow still standing). There are ghost towns all over the U.S., if you're brave enough for a visit. They're located in Pennsylvania, Wyoming, Montana, Alaska, New Mexico, New York, West Virginia, and more.

What state has the most ghost cities in the USA? ›

A study conducted by a company named Geotab has compiled a list of over 3,800 ghost towns across America. According to the company, Texas has the most ghost towns of any state, with over 500.

Where is the largest ghost town in the United States? ›

Welcome to Jerome, Arizona, America's largest ghost town.

Where is the largest ghost town in the world? ›

Ashgabat, Turkmenistan, a large city that's known for its marble buildings, is referred to as "the city of the dead."

What is the largest abandoned ghost town? ›

Jerome was a copper mining camp that grew from a settlement of tents to a roaring mining community. But after four disastrous fires,the Depression and the end of World War II, the thriving population of 15,000 decreased to only 100.

Why is it called the Forbidden City of China? ›

It was so named because access to the area was barred to most of the subjects of the realm. Government functionaries and even the imperial family were permitted only limited access; the emperor alone could enter any section at will.

What hidden city was found in China? ›

Forbidden City
The Forbidden City viewed from Jingshan Hill
Location within Beijing Show map of Beijing Show map of China Show all
Established1406–1420 1925 (as public museum)
Location4 Jingshan Front St, Dongcheng, Beijing, China
UNESCO World Heritage Site
17 more rows

What is China Forbidden City today? ›

Today, the Forbidden City is home to the Palace Museum. It houses over one million rare Chinese artworks and artifacts. Most of these come from the Ming and Qing dynasties.

Why did China collapse so much? ›

In brief,the key reason of the periodic collapse and reconstruction of ancient Chinese civilization is the population pressure in a relatively limited land resources and unfair distribution and possession of social wealth.

Why China is still the world's factory? ›

In addition to its low labor costs, China has become known as "the world's factory" because of its strong business ecosystem, lack of regulatory compliance, low taxes and duties, and competitive currency practices.

What does the Great Wall of China block off? ›

The Great Wall of China was first built by various states during the Zhou Dynasty to block invasions from neighboring states. For instance, the Qi State built the wall to block the Chu State, and the Chu built it to block the Qi and Qin States.

Does California have a ghost town? ›

Calico received State Historical Landmark 782 and in 2005 was proclaimed by then Governor Arnold Schwarzenegger to be California's Silver Rush Ghost Town. Today, Calico is part of the San Bernardino County Regional Parks system, which is visited by people from across the country and from all over the world.

Can people live in ghost towns? ›

There are thousands of abandoned hamlets in the U.S. Some people still live and vacation in them. Maybe you want to, too?

What is the ghost town Mystery about? ›

Grandfather has just bought a plot of land in the Rocky Mountains―complete with a ghost town! When the Aldens hear that the land is haunted, they don't believe it. But when they see a ghostly figure on the main street, they have another mystery to solve!

What is the most toxic town in the U.S. abandoned? ›

Abandoned Picher, Oklahoma: The Most Toxic Town in America.

What is the most toxic ghost town in America? ›

'The Most Toxic Town in America'

The town of Picher, Okla became an incorporated community in 1920, with a population of 9,726. The town was built around lead and zinc mining. In fact, Picher mine shafts produced over half of the lead used to make bullets fired during World War I.

Where is the most remote ghost town in America? ›

Beveridge, California
Beveridge
Coordinates: 36°42′16″N 117°54′54″W
CountryUnited States
StateCalifornia
CountyInyo County
3 more rows

Does Florida have ghost towns? ›

From creaky old buildings covered in vines to boarded-up churches and cemeteries, there are more than a few Florida ghost towns to explore. Sure, plenty of these abandoned towns aren't actually occupied by spirits, but at the very least, they're certainly home to creepy-crawlies.

What is the newest ghost town in the United States? ›

Eagle Mountain is among the America's best preserved ghost towns, mostly due to the fact that it's one of the newest. In the shadows of Joshua Tree in in Riverside County, the town was founded in 1948 by Henry J. Kaiser, a.k.a, the father of modern American shipbuilding.

Is there a ghost town in New York? ›

Tahawus, New York Is One of New York State's Biggest Ghost Town. Tahawus, New York actually has the distinction of becoming a ghost town twice. Ironworkers began working in the area in 1826 but were forced to close around 1857 due to impurities of titanium dioxide that was found in the iron.

Are there any modern day ghost towns? ›

Centralia, Pa.

Located in covered bridge-heavy Columbia County in northeastern Pennsylvania, the borough of Centralia is without a doubt North America's most notorious modern near ghost town. That's right, near ghost town.

Can I live in Garnet Montana for free? ›

Back in the day, Garnet was a frontier mining town but has been mostly abandoned for about 100 years. Your lodging is absolutely free.

Why does China have empty buildings? ›

For many years, the bubble in the Chinese housing market led to rising property prices and developers scrambled to build ever-more units. But demand for units has now shrunk, due to a number of factors, including increasing unaffordability of homes, an aging population, and slowing population growth.

Why are there so many empty skyscrapers in China? ›

CHINA is awash with "ghost cities" where apartment blocks stand abandoned or mothballed with some 65million empty homes. The dystopian landscape of empty high-rises, expansive parks and grand monuments are the product of China's breakneck economic rise over the last 30 years.

Are there any abandoned cities in the US? ›

As The New York Times reported, some 3,800 ghost towns exist in America, mostly abandoned between the 19th and 20th centuries for greener pastures and big city dreams. However, just because no one lives there doesn't mean you can't visit.

Why is there such a pull to the cities in China? ›

Rural-urban divide in China

Why, then, is there such a pull to the cities in China? Life is better in cities. Differences in living standards between rural and urban China are so large that the migration will continue to be seen as a solution for many people.

How many homes are empty in the US? ›

Sixteen million homes currently sit vacant across the U.S. In every state across the country, many homes remain empty while hundreds of thousands of Americans face homelessness.

Why are there no fourth floor in China? ›

But the number four is considered unlucky because it sounds a lot like the word for “death,” and as a result Chinese buildings often lack a fourth floor (just as American buildings sometimes skip the 13th). Likewise, Chinese drivers avoid license plates ending in four.

Is China still building cities? ›

During normal urban development, large cities absorb smaller ones as they expand, but in many cases in China they have over-expanded, building entire new cities or districts which become under-occupied “ghost cities.”

Why did China build so many walls? ›

For millennia, Chinese leaders instituted wall-building projects to protect the land from northern, nomadic invaders.

What was the purpose of building China's Forbidden City? ›

The Forbidden City was built in Beijing on the orders of Zhu Di — Ming Dynasty Emperor Yongle (reigned 1402–24). Its purpose was to consolidate his imperial power and protect his own security. Read on to see the story behind it.

What city has the most abandoned houses in USA? ›

The three most vacant cities in the U.S. are all in Florida: Orlando, Miami, and Tampa. These cities are known for tourism and vacation homes, which means houses sit vacant for much of the year.

What is the most abandoned town in America? ›

Bodie, California

Like a straight-up Western movie set, Bodie is one of the most famous (and the largest) unreconstructed ghost towns in America.

How many Americans live in China? ›

An estimate published in 2018 counted 600,000 people of other nations living in China, with 12% of those from the US; that means approximately 72,000 Americans living in China.

How many Chinese citizens live in the United States? ›

The Chinese diaspora in the United States is comprised of approximately 5.4 million individuals who were born in China, Hong Kong, or Macao, or reported Chinese ancestry or race, according to MPI tabulation of data from the U.S. Census Bureau's 2021 ACS. The Chinese diaspora is the ninth largest in the country.

Why do we get everything from China? ›

In addition to its low labor costs, China has become known as "the world's factory" because of its strong business ecosystem, lack of regulatory compliance, low taxes and duties, and competitive currency practices.

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