The Real Estate And The Gap Between The Rich And The Poor

The real estate industry has long been the major economic industries, account for a hugeproportion of the total economy. GDP growth in recent years, more than30%contribution by thereal estate industry. In recent years, with sustained national economic growth, people’s incomelevels and the relevant policy-oriented and complex factors, house prices rising rapidly, since2002, annual house price growth rate in more than10percent, no doubt making of broad interesteconomic hot spots. China’s Gini coefficient is precisely showing the trend of simultaneousgrowth and house prices in1995, rural and urban Gini coefficients were0.389,0.342,0.280, everyyear since then increments,2010data respectively0.51,0.482,0.494.Both of house prices and wealth are related to people’s livelihood, and both a synchronousupward trend is very likely to influence each other, real estate exists the use of the capital marketto grab the wealth of behavior, which will expand the gap between the rich and the poor. On theother hand, due to inequality of wealth will lead to speculative behavior of the real estate market,artificially promote housing prices. The national real estate prices are high but the total area ofvacant housing is growing, one of the reasons for this contradiction is the phenomenon of the gapbetween rich and poor. The phenomenon has coexistence of high prices and the wealth gapbetween China’s economy is in a dilemma.In this paper, the gap between the rich and the poor and house prices as the main object ofstudy, the use of the price formation mechanism of price formation and change. Combined withthe theory of income distribution to analyze the main reason for the gap between the rich and thepoor and influencing factors, comprehensive consideration of the various regions of the gapbetween the rich and the poor and the local price, select a more representative regional empiricalanalysis, the use of the Granger causality test and cointegration theory, error correction model, theestablishment of a simultaneous equations econometric study. A comprehensive analysis ofhousing prices and the gap between rich and poor generation factors and internal economicrelations between the two. Designed to reveal the mechanism of the interaction of house pricesand the gap between the rich and the poor, and new ideas to optimize the economic situation inChina from the perspective of people’s livelihood, according to the conclusions put forward some of the country recommendations.