What Are the Challenges in Renovating Old Housing?

Housing quality affects the happiness of thousands of families. Self-initiated renovation of old houses and original demolition and reconstruction have changed the government-led old renovation model, easing funding pressures and allowing more people to live in “good houses.”

Currently, China’s urbanization is shifting from rapid growth to steady development. The current and future urban work focuses on promoting high-quality urban development, with an emphasis on connotative growth and advancing urban renewal as a key strategy. The “Opinions on Promoting High-Quality Urban Development” issued in August 2025 by the Central Committee of the Communist Party of China and the State Council support self-initiated renovation of old housing and original demolition and reconstruction.

Compared to traditional renovation methods of old neighborhoods, the self-initiated renovation and original demolition and reconstruction model is still in the exploratory stage, facing a series of new situations and problems in practice. Only by targeting the core issues and finding “solutions” can we better meet the needs of the people.

Build consensus through voluntary negotiation. Renovating old housing is challenging due to diverse demands. Some residents desire improvements but lack funds; some have purchased new homes and are unwilling to bother with old houses; others hope for government-led demolition… The solution lies in negotiation to reach consensus. We should seek the “greatest common divisor” of public opinion, leverage government guidance, and establish diverse negotiation platforms. Using forms such as residents’ self-formed renovation committees, we can transform renovation intentions into collective action.

Address difficulties head-on by innovating funding mechanisms. For self-initiated renovation, “where does the money come from” is crucial. Establishing multi-channel investment mechanisms—such as “residents contribute a little, enterprises invest a little, property rights units contribute a little, and government supports a little”—is an effective exploration to break through this bottleneck. Practical measures like facilitating commercial loans, housing provident fund withdrawals, and supplementing renovation funds through project grants and social capital introduction are essential to building a sustainable urban renewal ecosystem.

Combine reform and innovation with practical strategies. Many policies and systems established during the period of urban expansion are no longer suitable for current needs and require reform and optimization. Due to objective conditions, some existing standards and norms for original demolition and reconstruction are difficult to implement; issues such as complex approval processes, multiple departments involved, and lengthy procedures are common in planning permits and construction approvals. Solving these problems requires pilot projects and experimentation. Adjusting standards for building spacing and area according to local conditions can make policies more practical; streamlining procedures and parallel approvals can reduce time and improve efficiency, enabling good policies to be implemented more quickly.

In self-initiated renovation and original demolition and reconstruction, residents are both active participants and direct beneficiaries. Practicing people-centered development allows more people to move from “having a place to live” to “living in a quality home,” injecting greater vitality into the city.

Original Title: Promoting “Housing for All” Toward “High-Quality Housing” (Thoughts)

(Source: People’s Daily)