The new urban area of Qingdao developed in the 1990s has become the political, economic, financial and cultural center of the city.New high-rise buildings have been erected ininstead of  shanty houses.

    For years, the Qingdao Municipal Government has stressed the overall development of the city in urban planning, ecological construction and residential buildings. As a result, a beautiful, clean and comfortable living environment with complete functions has been constructed. Accordingly the city was named a "national model" for city sanitation, environmental protection and greening. The city ranks the first for the "China Human Settlements and Environment Award", and became one of the cities with the best environment in China.

    The income and expenditure of the residents grew steadily, and people's living conditions further improved. In 2004, the per capita disposable income of urban residents was 11,089 yuan, an increase of 10.1 percent over the previous year; the per capita consumption was 9,002 yuan, an increase of 11.7 percent. The Engel's coefficient was 38 percent. The per capita net income of farmers was 5,080 yuan, an increase of 12.1 percent year-on-year; and the per capita consumption was 3,353 yuan, an increase of 12.2 percent. The annual average income of employees was 13,445 yuan, a year-on-year increase of 12 percent. The per capita living space for urban residents was 24.19 square meters and that for rural residents was 27.99 square meters.