An Analysis of Government Policy’s Impact on the Macro Real Estate Economy: A Comparative Study of the United States and China

Real estate markets are fundamental to macroeconomic stability and growth. This study provides a comparative analysis of government policies aimed at regulating the macro real estate economy in the United States and China. It examines the theoretical foundations for intervention, including addressing market failures like externalities and asymmetric information. The study traces the policy evolution in both nations, from the market-oriented responses post-2008 crisis in the U.S. to China’s administrative measures like purchase restrictions. By comparing the goals, tools, and effectiveness of these distinct approaches, the analysis reveals that while the U.S. relies on indirect, market-based mechanisms, China employs direct, government-led controls. Both models present unique challenges: the U.S. struggles with affordability and supply shortages, while China contends with speculative bubbles and economic distortions. The paper concludes that neither model offers a perfect solution, and it provides tailored policy recommendations for each country to enhance market stability and housing affordability, contributing to the broader fields of comparative political economy and real estate policy studies.