According to relevant statistics, residential investment declined from January to February this year. There are many reasons why this happens. The most direct reasons include the impact of the epidemic, the reduction in market demand, and the increase in loan burdens caused by rising interest rates.

1. The impact of the epidemic is the main reason for the decline in residential investment.

Fundamentally speaking, the main reason for this round of decline in residential investment is the impact of the epidemic. ...The past three years of the epidemic have made the entire economic development situation very different from before, and all walks of life have been affected. Residential investment has also been affected accordingly and has declined due to this reason. … This issue will eventually be solved after the epidemic is over, as all walks of life gradually return to normal.

2. Reduced demand is the direct cause of the decline in residential investment.

The direct cause of the decline in residential investment is the reduction in demand. …The reason housing continues to be built is because people are buying houses. But if fewer people buy houses, building houses will become unprofitable, which will lead to a decline in residential investment. ...The reason for this phenomenon is actually the impact of the epidemic. As the overall environment gets better and better, this problem will also be solved.

3. As interest rates rise, loan burdens increase, which also leads to a decline in residential investment.

The recent rise in interest rates has also become one of the important reasons for the decline in residential investment. …Rising interest rates will lead to an increase in loan burdens, and those who invest in housing through loans will be under greater pressure, which will lead to higher costs and lower returns. Therefore, the decline in residential investment has become an inevitable situation. ... It is precisely because of the direct reasons mentioned above, as well as some other factors, that the recent decline in residential investment has occurred. When these factors are addressed, residential investment can rise.