Analysis On The Telationship Between Uniequal Distribution Of Income And Commercial Housing Prices

The relationship between distribution inequality of income and commercial housing prices is an important issue worthy of study of the real estate economic research. In recent years, the distribution of income inequality and housing prices showed a consistent trend. And the raising of peoples’income level cannot keep up of the rising of house prices, which makes the issues of peoples’living and income had become the focus of attention. It’s the significant risks which affects the harmony of society and the healthy development of economy. Depth analysis of the relationship between distribution inequality of income and commercial housing prices, exploring the interaction between two real variables, can provide government with a theoretical basis for effective macro-controlling. And it can also have an important theoretical and practical significance for the healthy development of real estate and the decreasing of income gap.Based on the inter-provincial panel data from1999to2011of26provinces, this paper provide a practical analysis of relationship between commercial housing prices and distribution inequality of income by factor Analysis and panel regression. The result shows that distribution inequality and housing prices have a two-way influence, and disposable income of middle and high income groups has an important impact on housing prices, which is fully consistent with the theoretical assumptions. Housing prices and distribution inequality are mutually Granger cause. What’s more, panel regression model also shows that income gap and housing prices have a mutually positive influence. The disposable income of low-income group is not the Granger cause of housing prices, however, the disposable income of middle-income and high-income groups are. Panel regression model also shows the disposable income of middle-income and high-income groups have a positive impact on housing prices. Because of that housing prices and distribution inequality have a mutual influence; government should make reasonable real estate and economic policies for effective macro-controlling of housing prices and income gap.