Urban residents with hukou who want to live in the countryside can only rent rural houses — they must not buy homestead land or houses on it

Cost: No upfront cost. The trade-off is that the house remains the landlord’s property; the maximum single lease term is 20 years, after which a new agreement must be negotiated.
In plain terms: People with urban hukou are expressly prohibited by national regulations from buying homestead land, rural houses, or “small-property houses” in villages. Even if villagers claim “a written contract suffices,” paying money does not transfer ownership of the property. To reside long-term in the countryside, one must sign a lease agreement limited to 20 years per term, with renewal possible thereafter.
Benefit: Official documents from the General Office of the State Council make clear: “Urban residents must not purchase homestead land, rural houses, or ‘small-property houses’ in villages.” The same documents also state that after selling or leasing their homes, farmers cannot reapply for homestead land. A 2019 joint directive from the Central Rural Work Leading Group Office and the Ministry of Agriculture and Rural Affairs reiterates this ban while outlining a legal alternative: urban residents may rent rural houses for residence or business use, provided lease terms do not exceed 20 years and are mutually agreed upon upon renewal.
Evidence grade: A
Sources:国务院办公厅 (2007). 关于严格执行有关农村集体建设用地法律和政策的通知（国办发〔2007〕71 号）. https://www.gov.cn/zhengce/zhengceku/2008-03/28/content_2395.htm；中央农村工作领导小组办公室、农业农村部 (2019). 关于进一步加强农村宅基地管理的通知（中农发〔2019〕11 号）第五、六部分. https://www.moa.gov.cn/govpublic/NCJJTZ/201909/t20190920_6328397.htm
Notes: Homestead land is allocated solely to registered villagers for construction purposes. When renting a rural house, a written contract must specify the lease term, rent amount, permission for renovations, and how any renovation costs are handled at lease end. Leases exceeding 20 years — such as 50- or 70-year terms — are illegal; likewise, paying rent for multiple years upfront is prohibited. Additionally, it is illegal to use homestead land for building villas, large estates, or private clubs; paying villagers to “co-build” such structures also violates regulations.