Economic Factors Affect The Price Of Urban Residential Analysis

Housing has always been an important issue bearing on people's livelihood. In recent years, rapid increases in housing prices caused many concerns. Determine the significant factors that have impacted on house prices is very important, for it helps a lot for policy maker to determine the direction as well as to find suitable instruments.This paper study medium and large cities all over the country. The panel data including more than 9 factors of 34 cities from 1999 untill 2007. Afer using fixed-effects regression, we find that expection, GDP, land price and rent price have significant positive impact on the house price. Yet, population, investment in house, average salary, saving, are not as we once thought, are lack significant support from data.In the sub-regional study, we found that in addition to the expection and GDP, house prices in second-tier are affected by the average salary and land price while house prices in first tier cities are not. We could infer that the house price in second-tier cities are more rational than that in first-tier cities, because they are still subject to average wage and land price.