Housing prices in China started falling as the middle class were unable to afford homes in large cities. China has also given rise to many ghost cities, where many residential apartments are unoccupied. Home prices fell in 64 cities in January, 2015, compared to 65 cities in December.
The housing sector contributes 15% to China's economy and is primarily responsible for the slowdown in the economy. In 2014, the Chinese economy grew at 7.4%, it slowest pace in 24 years.