The Chinese government wants to create more affordable housing with a rent brake.
The cost of renting an apartment in cities may in future rise by a maximum of five percent per year.
"New townspeople and young people have only been working for a relatively short time and have low incomes, so they are barely able to buy a house or pay rent," said Deputy Housing Minister Ni Hong on Wednesday.
In the big cities, 70 percent of new residents and young people would rent an apartment.
The initiative is part of President Xi Jinping's pledge to reduce the social gap in the world's second largest economy and achieve “common prosperity”.
Demand for rental housing is mostly concentrated in the largest cities in China, which offer higher-paying jobs and the most employment opportunities - especially for college graduates.
Rental apartments are popular with the so-called millennials.
You can rarely afford to buy your own home as property prices have skyrocketed in recent years due to speculation.
Deposits of more than one month's rent are prohibited
The capital Beijing and the economic metropolis Shenzhen have already started to increase the supply of rental apartments this year.
In the past few months, several major cities have also planned new regulations on renting out apartments.
They should better protect the rights of tenants.
For example, landlords should be prohibited from asking for deposits of more than one month's rent.
The authorities also take action against real estate agents and online platforms if they demand excessive fees from tenants.
According to data from the independent real estate researcher Zhuge House, rental prices for apartments fell 0.35 percent in August compared to the previous month.
They had reached a seasonal high in early summer.