Although I'm not a student of economics, I can at least deduce from some basic rules of daily life that a plunge in housing prices will have a series of effects.

First of all, a plunge in housing prices will affect a large number of real estate development companies, who buy land at high prices and have high construction costs, plus various taxes. If housing prices plunge, real estate developers will have to sell houses at a loss, or even cause the company to close down.

Secondly: the impact is the government's income, after all, a part of the Chinese government's tax revenue and even a large part of the tax revenue of some cities, in the case of the local economic development downturn, the economic income of many localities is to rely on the sale of land into the hands of real estate tax revenue as a pillar, if the real estate plummeted, there will be a lot of real estate companies simply do not have the money to pay taxes, so the government's income will certainly have an impact.

Thirdly, the government's revenue will be affected by the crash.

Thirdly, if housing prices plummet, it will have a big impact on people who have already purchased a home, especially those who are not in need of a new home, who may have a few houses and rely on the difference in real estate transactions to increase their wealth income. Of course, this part of the speculators is also one of the driving forces behind the rise in China's housing prices, and it is this part of the population that has lost a lot of money as a result of the crash in housing prices. There is also a part of those who rely on buying and renting to make a living. When housing prices plummet, rents will fall accordingly, and this part of the population may also lose their homes.

Fourth: the plummeting of housing prices will also have a huge impact on the city's environment. It can be imagined that if some of the projects under construction found that the plummeting of housing prices, continue to build houses may be even more losses, so the building may be interrupted, so the formation of a series of rotten buildings, the demolition of these rotten buildings will also cost a lot of manpower and powerlessness, and so on.

In short, although I wrote a lot of bad things about the plummeting of housing prices, it does not mean that China's housing prices will not plummet or can not fall, because China's real estate bubble is too big, to the point that many people can not consume.