China’s Housing Crash Clouds Growth Despite Export Boom

China’s housing crash deepens as new-home sales slump to a 15-year low and apartment prices fall about 20% since 2021, choking consumer spending and squeezing local government finances that depend on land sales. Yet official data peg 2025 growth at 5% with a record $1.19 trillion trade surplus thanks to strong exports, while domestic demand remains weak and investment fell 3.8% last year—the first decline since 1989. Some analysts estimate true growth nearer 2.5–3%. Authorities aim to stabilize sentiment with measures like converting unsold homes into affordable housing, but local governments’ revenue strains and a demographic slowdown keep pressure on the housing market.