Research On The Development Of China’s Housing Market In The Process Of Urbanization

Urbanization is the core engine of the housing market, in the process of urbanization, urban infrastructure has gradually improved, not only bringing the concentration of industry and population agglomeration, but also promoting urban demand and huge potential for the housing market’s development. In the same time, the continued development of the housing market has been the most basic source of power for China’s urbanization process, and the overall development of China’s economy. Since1978, China’s urbanization has made great progress. The urbanization rate, which was merely17.92%in1978, rose to51.27%in2011. However, the role that the housing market plays still deserves a great attention.Based on the results of the systematically combing research, the paper studies the process of urbanization and real estate development in the past few decades. The former research shows that there is a close interaction between urbanization and housing market. Housing market is a major force of urbanization and urbanization is also an important driving factor of the housing market.Meanwhile, the paper builds a dynamic model of housing supply and demand in the housing market, and analyzes the impacts of the urbanization factors in the model. To further understand the relations between urbanization and housing market, the paper expands the housing market supply and demand model to urbanization within the framework of domestic population growth model, dynamic model and the residential housing market equilibrium model based on the theory of population migration and housing construction market development relationship model. With the statistical methods, the paper evaluates the prospect of286prefecture-level city housing market’s development. The results show that first-tier cities’ housing development is still in the top row, the second-tier cities have an expansion space, and capacities of the third-tier cities’market are relatively small. To further investigate the interaction effect between urbanization and housing development, the paper estimates the simultaneous equation model, and the results indicate that urbanization leads to the city’s housing demands, the increase of urban land supply and disposable income also promote the development of urban housing. Results also show that the development of real estate intensifies urbanization, while impact of the housing sales on the urbanization is negative.This paper also discussed the prospects of urbanization and development of the housing market. In2022, the population of the urban resident will be about882millio n, and the urbanization rate will be62%; total housing demand over the next decade w ill be about12billion square meters. Meanwhile, three levels of cities will be confront ed different opportunities and risks.Housing market is faced with a lot of problems now. Therefore, in the process of urbanization, varied relationships between the dilemma of macro and micro management, housing markets and housing security, housing prices and market development, migration and market development, and urban renewal and market development, should be properly dealt with. This paper argues that urbanization and real estate development in big cities should adhere to a resource-saving and environment-friendly development path. Small cities of the third and fourth-tier should be the bond between the rural and metropolitan areas.