China began phasing out its one-child policy last year, but the aftermath of roughly 35 years of single-child families has completely shifted the structure of the modern Chinese household. According to Bloomberg, the number of single-resident Chinese households has skyrocketed in recent years.
As of 2014, 15 percent of all Chinese households were one-person residences. That number is up significantly from about 6 percent in 1990.
Data from neighboring Japan, which has more than 30 percent single-resident households, shows that China could easily continue to get even lonelier.
The biggest change has come in the number of younger and older Chinese residents living alone. Young Chinese workers, who grew up in single-child homes, have been leaving their aging parents and living alone. The Chinese population is rapidly aging. In 1990, only about 5 percent of China’s population were over the age of 65. Bloomberg estimates that percentage will reach 28 percent by 2050.
Attitudes about marriage and divorce have also contributed to the shift in Chinese household demographics. The percentage of Chinese residents age 25 to 29 that are unmarried has more than doubled since 2010. In addition, China’s divorce rate tripled from 2002 to 2014.
Chinese companies like Alibaba Group Holding Ltd BABA are attempting to capitalize on the growing number of tech-savvy young Chinese residents who are working and living alone. Alibaba’s $4.5 billion smartphone app Ele.me, for example, delivers single-portion dinners to residents’ homes.
Disclosure: The author is long BABA.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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