In the southern Chinese city of Huizhou, a population of around six million near Hong Kong, a growing number of residents are embracing life in what have been dubbed “ghost cities”—large urban developments marked by sprawling, mostly vacant residential towers. These developments, a legacy of China’s unprecedented property boom, now offer unusually low rents and spacious living conditions, attracting individuals seeking affordable, low-stress urban lifestyles.

Ruby Chen, an online English teacher originally from Chongqing, rents an apartment in the Prosperous Lakeside Mansion complex overlooking Daya Bay. She pays roughly 1,300 yuan ($190) monthly, a fraction of costs in major Chinese cities. The complex, completed in 2021 by RiseSun Real Estate Development, remains only partially occupied as the broader housing market contracts amid falling real estate values and a deepening demographic decline. Chen appreciates the flexibility the plentiful vacancies afford her, allowing her to easily relocate within the complex if desired.

The downturn follows Beijing’s 2021 crackdown on developers’ leverage, which punctured China’s decades-long housing bubble. Prices in many smaller cities including Huizhou have since dropped sharply; some apartments have lost half their initial value. RiseSun and other developers have entered debt restructuring as overall market demand weakens. Analysts warn that recovery prospects in these third- and fourth-tier cities are limited compared to first-tier hubs like Beijing, Shanghai, Guangzhou, and Shenzhen, which continue attracting talent with high-tech industries.

Experts attribute the crisis to overbuilding driven by decades of local government incentives that prioritized rapid real estate development to boost economic growth and officials’ promotions. Nationwide, the real estate sector once accounted for roughly a quarter of GDP growth and represented 60 percent of household wealth. However, new home sales among the top 100 developers dropped nearly 73 percent between 2021 and 2025. Residential inventory now includes approximately 70 million unsold units, alongside a “shadow supply” of 90 to 100 million vacant, previously sold apartments, according to estimates by Goldman Sachs.

This immense surplus suggests that many smaller cities could face persistent oversupply for years. Vacancy rate data remain opaque; an estimate of around 20 percent published by a real estate platform in 2022 was later withdrawn amid concerns over transparency.

Within these developments, amenities are often underused or sealed off, and many shops remain empty, as observed by residents like Charles Xue and Olivia Shu in Huizhou. Some inhabitants use their apartments primarily as secondary homes, favoring residences in larger neighboring cities. The quiet atmosphere and low living costs appeal to diverse groups, including foreigners such as Daniel, a freelance actor from Kazakhstan, who describes a local occupancy rate near 30 percent.

Amid these conditions, some experts argue that parts of the housing stock may ultimately be demolished. Yi Fuxian, a demographic specialist at the University of Wisconsin-Madison, notes that in cities experiencing severe population decline and structurally diminished demand, removing unsellable properties might become unavoidable.

Despite shrinking property values and limited investment appeal, residents like Chen and Daniel are finding opportunities for a more affordable and relaxed lifestyle in China’s shifting urban landscape.