Is real estate also a pillar industry in the United States?

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Source: Dashuxiangzhang (ID: dashuxiangzhang)

There is a basic principle in materialism that objective laws do not depend on human will.

For example, in nature, the sun rises from the east every day. If you don’t like it, you have to say that it must rise from the west tomorrow. As a result, the sun will rise in the east and set in the west tomorrow.

For example, in human society, emperors are called Long Live every day, but since the unification of the Qin Emperor, the average life expectancy of emperors in all dynasties has only 39.2 years.

For example, the Jin Dynasty is not only a short-lived dynasty, but also the emperors of the Jin Dynasty are short-lived emperors, with an average life span of only 35 years, which is far from Wansui.

But people always have likes and dislikes, and likes and dislikes always affect people’s cognition and grasp of laws.

For example, recently our senior government officials said that “real estate is an important pillar industry in China”, and everyone was worried about going the old way;

Another example is that recently an economist said that “real estate is also a pillar industry in the United States”, and everyone was a little reluctant, as if experts were deliberately comparing with others.

Let me say that there is no problem with what these two sentences say. They are both facts; Moreover, it is also in line with the economic law that real estate will become a pillar industry of a country at present, regardless of whether the country is a developed country or a developing country.

The importance of the real estate industry to China is self-evident, and it is also very important to the United States. Why do you say that?

In fact, for any large country, especially the industrial country with a population of more than 100 million, real estate is very important because it involves a wide range of industries that can be pulled; Moreover, it has the investment attribute, so it also has the wealth effect.


In addition to the financial crisis in 2008, house prices in the United States have maintained a steady upward trend

From the perspective of the industry, the development of the real estate industry cannot be separated from the construction industry, which is an important supply chain of the real estate industry, and the building materials manufacturing industry provides a large number of building materials and equipment for the real estate industry.

The financial industry also benefits directly: the real estate industry needs a lot of capital investment and financing, and the financial industry can provide loans and other financial services to provide necessary financial support for the real estate industry.

The development of the real estate industry will also drive the development of the home decoration industry and the property management industry: any house needs decoration and the decoration of household goods; The property management industry can provide the real estate industry with the operation, maintenance and management services of houses, commercial land, public places, etc.

Historically, after the United States became the world’s largest industrial producer, the automobile industry, the electrical industry, the construction industry and the steel industry continued to boom, and the construction, automobile and electrical industry were known as the three pillars of the United States economy during the “Coolidge boom” period.

Even after nearly a hundred years, before 2008, the contribution of real estate to GDP ranked first among all industries in the United States, and after 2008, real estate still ranked second.

Unlike film and Walkman, this industry will be eliminated with the progress of science and technology, because living is always the basic demand of people, and it must be the basic demand for the most money, and the quality of living can best reflect class differences, which alone determines that this industry is not small.

Looking back at China, how long has it been since China became the world’s largest industrial country? Is the industry we can handle very similar to that of the United States in the same position a hundred years ago – automobile industry (new energy vehicles), electrical industry (photovoltaic, ultra-high voltage), construction industry and steel and iron industry?

Therefore, it is inevitable that real estate is a pillar industry in China, and it will become a pillar industry for a long time like the United States.

Moreover, the reason why the real estate industry is a pillar industry in the United States is not only because of its high added value, accounting for more than 11% of GDP, but also because of its financial attributes.

Nearly 30% of the assets of American residents are allocated to the real estate sector. At the same time, most Americans and Chinese people also use mortgage loans to purchase real estate. At present, about 70% of the assets are mortgage loans, which are the absolute largest part of the debt structure. The remaining 9% are student loans, 9% are car loans, 6% are credit card loans, and 2% are home equity refinancing.

Among other things, the financial crisis in 2008 originated from the subprime mortgage crisis in the United States. It was the collapse of the U.S. real estate market that led to the collapse of a large number of securities and financial derivatives based on real estate prices, resulting in a liquidity crisis that led to the bursting of the foam and the global financial crisis.

The importance of real estate in the financial sector can be seen in general.

China does not engage in financial innovation and sub-prime lending. Of course, there will be no sub-prime crisis. But China has “land finance” and “land finance”. Although it is a more primitive financial means, it also uses the financial attributes of real estate.

To understand this point, we can understand that houses can “live without speculation”, but the real estate price cannot collapse, because the pillar industry really drives the whole body.

Moreover, unlike the United States, China’s real estate related income accounts for 50% of the local comprehensive financial resources and 60% of the residents’ assets, which are far higher than those of the United States. This also makes it more difficult to deal with the real estate foam in China.

The objective law is there. Whether we like it or not will affect our life.

After talking about the law of real estate development itself, it is really no problem to look back at those statements.

What’s the problem? The problem is not the real estate itself, but the fundamental reason why every time we release water and lift the nightpot, the gap between the rich and the poor is one level.

Who owns too many resources, and who takes the importance of real estate seriously. Only by answering this question can we understand why regulation always has limited effect, and who has the six wallets of young people.

To deepen reform, it is not enough to focus on the objectives on the table. Too many landlords under the table are overdrawing the country’s future.

But we don’t have a dollar printing machine to cover the increasingly acute contradictions of the times.

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