Private real estate developers in cities appeared at the beginning of the 1990s when people started buying their own homes, mostly flats in high-rise apartment blocks. Today more than half of Shanghai households are owner-occupied.

The price of a flat is calculated per square metre 平方米. In specifications the number of rooms is indicated by 室 and 厅. 室 refers to 'bedrooms', although this can also include study rooms and guest rooms, and 厅, meaning 'hall', refers to living rooms and dining rooms. Thus 一室一厅 is a one-bedroom flat with one living room. 三室两厅 is a three-bedroom flat with two living rooms, one of which might be used as a dining room. All residential areas are serviced by some kind of warden for security purposes.

Most city centres combine old and new buildings. For example in old quarters of Beijing most people live in a 四合院, a square courtyard with accommodation on all four sides. It is suitable for a large family as the different generations can all live together. Each part has its own rooms but also has access to the central yard for communal activities. These units are connected by narrow lanes called 胡同.

In Shanghai, traditional houses are called 石库门. It literally means 'stone gate house', in reference to the main house entrance, which is decorated with a stylish stone portico. These houses are terraced along straight alleys called 弄堂.

In the past few years, some of the traditional houses have been converted into modern cafés and shops, letting tourists experience a taste of old China in the comfort of 21st century amenities, like in 前门大街 in Beijing or 田子坊 in Shanghai.

Property developers have also built some western-style villa estates on the outskirts of towns, to attract a new middle class population.

Despite these major building programmes in the cities, there is still a shortage of housing to accommodate the ever-increasing population. As a consequence many young married couples have to share a flat with their parents.