A Research On The Housing Market And Government Regulation With Chinese Characteristics

House is the most basic means of subsistence for human survival and development. It's also an important sign to measure one country's economic development and people's living standard. In China's cultural tradition, "place to live before being happy" and "home ownership" are two very important ideas. So, House is a critical issue and has become the focus of the government's concern.China's real estate market-oriented reforms began in the seventies and eighties, the twentieth century. After 30 years of development, the China's real estate industry have been expanding a lot, Its not only led to economic growth, but also improved living environment and promote the process of urbanization. Because of the relatively short development time, and lack of experience, there are many problems on China's real estate industry. Although the government has introduced a number of stringent policy, but it does not work. It is in this context, this article analyse the factors affecting the real estate prices, from the two aspects of supply and demand.Supply is one of the significant factors on the real estate market, it directly determines the supply quantities and structure in the real estate market, and then affecting the real estate prices. The factors affecting the real estate supply, including land supply,construction and installation costs,second-hand housing market,housing rental market, etc. Among these factors, the increase of land prices, the difficulty of accessing to land, government regulation, the rise of construction and installation costs, are all the direct results of the rise in housing prices; second-hand housing market and rental market, as an important complement to incremental housing market, do not effectively alleviate the pressure on the housing market. From the demand factor, rising incomes, expansion of the population, and accelerated urbanization process, have further stimulated the housing market's demand. However, our special consumer psychology have exacerbated the contradiction between supply and demand, it has became a very important factor that promoting the housing prices.So, the real situation of China's real estate market is, the housing supply is inadequate, but the demand factors further exacerbated the imbalance between supply and demand. In this double pressure, real estate prices remain rapidly rising. Thus, the real estate market is a very complex market. Its operation is not only affected by the market internal factors, but also constrained by many external factors from the outside of the market. It is precisely because of such many factors, the real estate market has become sufficiently complex. This complexity asking the Government must be based on national conditions, and use the market-oriented means of regulation to guide the healthy development of the real estate market. First of all, Government should establish a correct guiding ideology, and carry out a profound reflection on the real estate market. Then the Government should establish a set of scientific, systematic and standardized policies to guide the healthy development of the market.The biggest innovation of this paper is, conducted a comprehensive analysis of the supply. Prior to this, theoretical analysis of this issue was not completed,and led to the policy has no effect. The second innovation is, this paper carried out a profound reflection on the government's guiding ideology, regulation and control measures. Today's situation in the real estate market was not unilaterally caused by real estate developers, government,consumers and the media should take part responsible for it. The last one is, this paper display author's own opinion on the future trend of the real estate market, based on the facts,data,and basic national conditions in China. For a long period of time, there are no factors to drive down real estate prices.