Research On The Pricing Of Subsidy Standard About The China Low-rent House

Eat and wear is related to the national economy and people’s livelihood. Since1998, the State Department’s notice about further deepening reform of urbanhousing system to accelerate housing construction proposed that low-rent housesshould be provided to the lowest income families by the government or their units。It has been for ten years for low-rent housing-system construction that so large anumber of low-income families have benefited from it and remarkably improvedtheir housing conditions.However, the practices of low-rent housing turn out to be not always satisfactory.Some problems revealed in its implementation process such as how to define thefavored crowd size when facing so large a floating population in the city；What’s anappropriate security-level that will do help to many “sandwich layer” people andyet a sound pricing mechanism has not been found for low-rent housing policydirection and guidance. All these lead to a low security coverage of far behind theeconomic development. It is estimated that by the end of2008the ensuredfamilies of the town account for only1.61%, the population of0.53%(in2005ministry estimated that the low-income and housing-difficulty families still living inhouse of10or less square meters is nearly10million of5.5%of the urban familieshouseholds in the country). On the other hand, in Chinese housing-market thepurchase demand from medium and low-income people is still the mainstream,which is the major impetus to the last high tide of house-price. The huge contrastbetween a strong housing demand to buy and the depressed purchasing power toafford from medium-and low-income families has developed into a major socialproblem. So, it is needy in the current time for Chinese government to dosomething to resolve the low-and medium-income housing contradictory by theway of restraining excessive increase in prices and rental and spending more infinance devoting.It is an urgent and important topic for the low-rent housing system to beperfected further from various aspects. Firstly, in rent-decision perspective for a detailed standard, this paper summarizes low-rent housing constitute byinterpreting low-rent housing development processes and then putting theemphasis on the analysis of the rent-standard issues; Secondly, collects the dataon low-rent housing subsidy-standard and social economic development from allover the country, trying to distinguish the key from various factors which influencethe rent-subsidy standard, and later on to establish a dynamicrent-subsidy-standard model, in the end of this chapter Grangercausality-relationship analysis has been made to reveal further interacted effectsbetween rent-subsidy criterion and its influence factors in a long-term equilibriumand short-term fluctuation in order to provide reference information for thegovernment to make reasonable rent-subsidy regulation and adjust it in properoccasion.Finally, beginning with an analysis to the burden on the low-income families andsimultaneously considering the international experiences and their incomesituation, a gradient low-rent level has been proposed for protection on housingrent-allowance. Thus, the government will determine the size of funds according totheir ability to guarantee financial commitment, and decide the scope of protectionand security on the affordable capability of rent those low-income families can beburdened on.