Research On Housing Affordability In Wuhan

Since1998, China has gone deep into her urban housing system reform. The marketmechanism has been brought into the housing resources distribution and had a greatimpact on it. However, many problems appear in Chinese real estate market such ashousing affordability problem of middle-and-low income family.The paper firstly obtains the housing affordability of the representative residents agedtwenty to thirty in Wu Han through random questionnaire survey. Then we use the orderlyProbit model, orderly Logit model to find out what influences the housing affordabilityand what degree of each factor.Through our research we find that: housing affordability problem is largely aquestion of income, the current salary and expected future income changes have asignificant influence to housing affordability; In addition, we found that residentprofessional background will also affect the housing affordability, in particular, theresident who has the public sector professional background has a larger housingaffordability than the one in private sector, in the reason that the resident in public sectormay enjoy more income besides wages and various welfare. The study also findseducation degree also has a remarkable effect on housing affordability, and because of theshortcomings of the sample and institution, housing welfare does not play a role as it isdesigned. The findings of this paper will help us understand deeply which factorinfluences housing affordability and brewing housing system and income distributionsystem reform.