Evaluation Of Housingafford-Ability Of Urban Residents In China

In recent years, the high price of housing problem has become a focus problemthat government pays attention to, so housing affordability becomes one of the keyproblems. Housing affordability is an important signal of the housing market.Housing consumers choose the way of housing consumption according to it; Housingmanufacturers develop different product development strategies by assessing housingaffordability of different income groups. Governments determine the standard andscope of housing support according to housing affordability. Financial institutionsassess the risk according to housing affordability for purchase of a mortgage.Housing affordability of urban residents in China is this paper’s research object.This paper uses qualitative and quantitative analysis, the purpose is to understand howto measure housing affordability, what factors affect housing affordability, thenconstruct a analysis framework. In this paper, Panel Data model is used to study theimpact of the factors which are policy adjustment, housing price and economicfundamentals on housing affordability, adding dummy variables. Then construct theevaluation index system, on this basis, use SEM of comprehensive evaluationevaluate housing affordability of China’s31provinces.Firstly, price to income ratio and housing affordability index are used to asseshousing affordability of China’s urban residents, then analyzes the influencing factorsof the residents’ housing affordability and evaluation results, It reveals that:(1) From the country as a whole, most of the provinces’ housing affordability isweak, and it is declining year by year.(2) The regional difference of every city’s urban residents’ housing affordabilityis notable, and this difference is widening. Every city’s urban residents’ housingaffordability is weak. But, housing affordability of Beijing, Shanghai, Zhejiang and soon is weaker, they belong to the eastern provinces. Housing affordability of Tibet,Yunnan, Qinghai is relatively strong, they belong to the western provinces. Thisshows that although per capita disposable income levels of the eastern provinces ishighest in the country, housing affordability is weaker then the western provinces’.(3) The impact of housing price on housing affordability is negligible in westernareas; income and consumer spending levels have the most significant effect onhousing affordability in eastern areas; the impact of quantitative tool on housingaffordability is the most effective in western areas; interest rate has the most significant effect on housing affordability in eastern areas.