Mobilising urban village houses into local public housing provision: Towards a hybrid mode of public housing (re)production in China

This study examines the innovative approaches being developed by local governments in China to meet the ambitious public housing targets through the mobilisation of existing properties in urban villages. Our empirical analysis of Shenzhen's Affordable Rental Housing (ARH) scheme reveals the emergence of a “selective expansion” approach, in which public housing simultaneously grows in scale while controlled access is maintained aligned with economic development objectives. Contrasting the common Western trajectories of residualisation, selective expansion can be seen as a third pathway that combines quantitative growth with strategic targeting under a developmental welfare regime. In short, state-owned enterprises (SOEs) acquire temporary management rights over urban village properties while the original ownership structures are maintained in a hybrid ownership arrangement involving sophisticated portfolio management strategies. The approach introduces market competition between public and private providers in which a segmented or localised unitary rental model is created. While the innovative approach helps meet central housing targets through rapid expansion, it raises questions about social equity, particularly regarding the displacement of existing urban village residents. The findings of the present study reveal how hybrid modes of housing provision emerge within state-led systems while highlighting the tensions brought by rapid expansion and social inclusion in developmental welfare contexts.