From the chart, we can see clearly that in a big city in China, state-owned houses declined from 75% in 1990 to 60% in 1995 and then to 20% in 2000, while private houses rose from 25% to 40% and then to 80% during the same period.
Two reasons, in my mind, can account for the fundamental changes in the ownership of houses. On the one hand, the housing reform is one of the most important urban economic reforms and the old system of house distribution is replaced by individual purchase of real estate. On the other hand, as the income level goes up, people want to live in larger and more comfortable houses.
Such changes have a significant impact on both individuals and the whole society. For one thing, with the deepening of the housing reform, private housing investment witnesses an unprecedented boom. For another, national urban construction undergoes sustainable development, which is of great importance to the national economy as a whole. In a word, the housing reform is beneficial to both individuals and the whole society.