Early this year, property prices and sales resurged in top-tier Chinese cities — and, to a lesser extent, in second- and third-tier cities. The revival followed the boom (and subsequent collapse ) of China's stock market in 2015, which, in turn, reflected Chinese investors' search for sound investments after the prolonged decline in home prices that began in March 2014. This recent history could serve as a cautionary tale for China's macroeconomic managers today, especially if the housing market keeps slowing in the second half of 2016. The Chinese government is running out of sustainable avenues for channeling the investment on which its economy still depends. At the same time, it is also running out of effective ways to maintain the high growth and employment rates that undergird social and political stability in much of the country.