Research On Financing Problems And Countermeasures Of Public Rental Housing In China

With accelerating the pace of urbanization, real estate market of China goes onheating up and housing prices continue to rise, which brings not only great amount ofeconomic profits but also a lot of problems, for example housing safety system lagsbehind the high development of real estate. Nowadays, housing problem has become ahot topic in urban life, especially that of low and middle income groups. Currently, agroup, including college students who just get a job and migrant workers springs up.They do not meet the requirements for budget homes, nor can they afford commercialhousing and affordable housing. Therefore, they are vividly called―sandwich class‖.How to solve the housing problem of―sandwich class‖becomes the most important taskfaced by our government. Public rental housing is an effective way to solve thisproblem.According to the document spirit conveyed by the Circular the State Councilforwarded about the suggestion of the emphasis work given by the NationalDevelopment and Reform Commission aiming to deepen the reform of the economicstructure in2013and the Guideline of State Council General Office concerning theconstruction and administration of indemnificatory housing project and so on,thesystems of public rental housing and low–rent housing have been merged since2014and collectively called public rental housing, well,since the new policy has beenjust put into practice all over the country, and few relative references can be found, theresearch of financing of public rental housing in this paper is still based on the condition before the new policy come out.Large-scale construction of public rental housing needs a large amount ofinvestment. Although the sustainable supply of funds can not only ensure theconstruction of public rental housing, it has also become a bottleneck restricting thedevelopment of public rental housing in our country. As a new type of affordablehousing, public rental housing with large-scale investment, long-term occupation offunds and low-rate of return makes investors concerning for profits hesitate. However,our government is unable to bear the responsibility. So there is a huge funding gap ofpublic rental housing. Therefore, how to broaden the financing channels and innovatefinancing mode to raise money becomes the key to solve the problem of public rental housing finance in our country.From the perspective of public rental housing, the author expounds her ideas on thebasis of collecting data, reading literature, normative and empirical analysis, andcomparative study etc. This paper researches financing problem of public rental housingin the macroscopic view: it introduces present situation of our country’s public rentalhousing from the perspective of financing mode and financing channels and summarizesexisting problems and causes of public rental housing financing; further studiesfinancing situation of public rental housing in developed countries and gets someenlightenment from it; finally from three aspects, proposes some suggestions on publicrental housing based on the combination of successful experience of foreign countriesand the condition of our country. That is, the solution to financing problem of publicrental housing can not only depends on the rules and regulations or the innovation offinancing mode, but also calls for actions on all levels. This paper hopes to solvehousing problems of―sandwich class‖and build a harmonious society by formulatinggoals and principals, perfecting kinds of system policies and present laws andbroadening financing mode and channels and so on to raise money for public rentalhousing.