China's housing market is still shrinking. The government just measured it.

Official data from China shows housing prices in most major cities continued to fall in April 2026. This means homeowners are seeing their property values shrink, and local governments are losing a key source of revenue.

China's local governments rely on land sales for much of their income. Falling housing prices make it harder for developers to buy land, which then starves city budgets. This also makes homeowners feel poorer, which means they spend less money.