The Empirical Analysis Of The Effect Of Housing Consumption On Economical Growth

As one of the most important industries, the health and stable development of real estate plays an important role on the national economy’s development.At the same time, the housing in our country has both investment and consumption properties, what’s more, distinction between investment and housing consumption is not clear that it’s difficult to distinguish their contribution to the economy respectively. When home price increases too quickly and exceeds the average purchase-power level of local residents, residents will reduce consumption and save money to buy a house, extrusion of housing consumption such as renting, resulting in the adverse impact on the economy. This paper is expected to define the housing consumption and analyse the effect of housing consumption on our economy and support to the government improve residents housing consumption with some policy recommendations.This paper firstly introduced that facing the requirements of the international economic situation and domestic economy, then put forward the consumption to be the long-term power to pull the economic growth in China. Secondly, the paper did the first theoretical analysis of the force to promote economic growth at the core as the part and parcel of consumption; on the one hand, with the large-scale social production and urbanization process in China, there are constant demands of house and housing consumption itself has the huge development space. On the other hand, the housing consumption promotes the related industries’development, urban and rural housing in citizens will not only promote the real estate market’s recovery in business activity, but also drive the boom of building materials industry, decoration, furniture, home electrical appliances product and do on, still acting as the crucial role of the expansion of domestic demand. Finally, using empirical analysis methods and statistic analysis, the paper illustrated the relationship of housing consumption and economic development which includes basic regression model, adding virtual variable model and the state space model verifying that the future housing consumption will lead to drive economic growth.