IMO housing will sort itself out if you consider reverse of 4:2:1 is 4 households / wealth transfers to the 1. Every married couple and their kids eventually has access to ~4-8+ housing units. Hence IMO even TFR will sort itself out once housing pressure / availability disspates by virtue demand decreasing due to less people. Of course transition can be very difficult/painful/messy, i.e. demand in T1/2/3 cities still going to be high, a lot of freed up housing is going to be rural, like all the abandoned villages in JP. Maybe remote work + cottage culture will finally pick up in PRC once most families inherit some rural land to chill on. TBH I can imagine PRC life being incredibly more relaxed once less people compete for resources.
As for freedoms, depends on which kind. I think most will be satiated with increased material prosperity / fully automated luxury communism meme conveniences. There's plenty of Chinese diasphora in the west jaded with western political process, and I wager that trend with continue with how things are progressing. Plenty of international students with first hand experience become more pro CCP. Ultimately people are going to decide if they want freedom to talk shit about unresponsive governments that get nothing done or crusing along in their self driving cars enabled by surveillance state.
And let's not pretend immigration driven demographic growth strategies are not bringing their share of social problems... in fact it's probably one of the largest sources of domestic instability being interrogated by such countries right now.
They have very real understanding that all of it could be unilaterally taken away by the state at any time, so even if they flash their wealth they keep their mouths shut. At the same time many do buy in to state propoganda.
But what of their children who are born into comfort of middle class and are less materialistic and willing to fight to justice?
As they should, particularly the obscene rich who could not have possibly gotten obscenely rich without shady sheningans that _should_ get a CCDI visit. There's tacit understanding that phase of wealth accumulation is mostly over, and if you lie low, keep you mouth shut, behave, you can likely live comfortably but quietly enjoying the misbegotten gains from being fortunate beneficiary of "let some get rich first" period.
>willing to fight to justice
Over what? Peak covid19 lockdown brought a few white paper protestors and negligible shanghai libtard youths coming to the streets. IMO they're unlikely to experience that tier of adversity short of another blackswan event. Many of them are guanxied into comfy enough work opportunities with their parents nest eggs to coast on eventually. I don't really see any particuarly incendiary justice issues to fight over from this cohort except feminists/LGBT and related identity politics, but society skews old and conservative, those cohorts losing fight due to demographics for a long time regardless. They'll be even more quiet, because society is overwhelmingly indifferent to them. Which is not to say against, just not proactively endorse. And with cultural shift west is trending, there isn't exactly going to be a liberal model to follow without rest of country mocking them. Baizuo is a dying breed, west is increasingly not a place to emulate, especially when many international students and diasphora with experience in west is getting CCP pilled after experiencing western dysfunction, exacerbated by anti PRC sentiment.
Everyone else is going to be too busy with the grind like SKR and JP trying to fight for scraps with academic/skilled workforce inflation/overcapacity and eventually accept their lot in life for being statistically mediocre. This is probably where the real discontent will swell, fighting for their share of more materialism. And IMO that's partly why CCP focus very hard to indigenize everything and embrace material model (i.e. not pure profit) of industry - they want be able to drive cost of everything down so masses can buy $20,000 cars that's comparable to a $60,000 car - there's still a lot of headroom of satiating masses with nice things.
Will there be as many cheap workers as last couple decades pouring 100 years worth of US concrete in 3? No, hence why all the upfront build infra investment right now, while blue collar still somewhat plentiful and cheap. Meanwhile, tons of resources pouring into automation / humanoid robots, because at PRC scale, IMO can't really immigrate/migrant worker way out of issue. Not saying it's not possible, see meme of circle around Asia where 50% of humans live. There's likely still going to be a lot of accessible cheap bodies around if culture willing to tolerate it.
The broader picture is big % (like 30%+) of PRC workforce has been (and will be until they die) bluntly... net drag. There were always 100s of millions of farming households (functionally a jobs program) and informal workers spinning wheels doing shit all. All the labourers and workers pouring concrete and building factories were only ever fraction of PRC workforce. PRC losing the fraction that doesn't do much and replacing it with a smaller fraction that does a lot, and when aggregate # of workers that does a lot is 2x-3x more than peers (vs past where peers had orders of magnitude more skilled than PRC), then that's much better net position for future when competing on high tech / high value. Another added benefit of not having 100s of millions of excess mouth to feed and fuel and future PRC demographics is also going to enable strategic autarky like US. IMO PRC "finite" still too much. There are a lot of benefits to where PRC demographics is trending within our lifetimes. Of course if they don't figure out TFR in 30-40 years things will get real bad in 60-70 years, but that's time frame too distant to extrapolate.