Study On The Influence Factors And City Differences Of Rent-Price Ratio

Housing price and housing rent are different forms of residential value, which should maintain a certain ratio. However, in many real estate markets, they appear to be deviated. Over all, rent-price ratio shows great volatility, and the rent-price ratio in cities at all levels shows significant difference in the reference level or the fluctuation tendency. According to the research background, the content of this paper can be divided into three aspects:firstly, the relationship between housing price and housing rent; secondly, the influence factors of rent-price ratio at the national level; thirdly, the city differences of rent-price ratio in different city levels.This paper aimed to study the relationship between housing price and housing rent, the influence factors of rent-price ratio and the city differences of rent-price ratio with the annual panel data of2008-2013of30cities as the research object. In the third chapter, it uses simultaneous equations model to test the relationship between housing price and housing rent and to test the influence factors of housing price and housing rent. In the fourth chapter, it studies the influence factors of rent-price ratio by following the empirical analysis steps of the panel data. And, it judges the status of real estate market by comparing the rent-price ratio with benchmark interest rate and international standard interval value. In the fifth chapter, we divide cities into four levels:first-level city, second-level strong city, second-level weak city, third-level city. And we use the third-level city as the base city to introduce dummy variables in regression analysis to study the city differences of rent-price ratio.The conclusions are as follows:firstly, housing price deviate from the fundamentals of housing value and is beyond a reasonable scope. Secondly, housing price has one-way positive effect on housing rent. Thirdly, the influence factors of housing price and housing rent have overlapping ones and different ones. Fourthly, at the national level, the residential development investment has a positive effect on rent-price ratio, while, the GDP, per capita disposable income, the non domicile resident population and housing price expectation have positive effects on rent-price ratio. Fifthly, rent-price ratio do has city differences, no matter in the overall level, specific influence factors or the direction or tendency of influence factors.Therefore, the regulation of real estate market is necessary. On one hand the government should guide the residents to form the correct price expectations. On the other hand, it should coordinate the development of the residential market and the residential rental market. In addition, the regulation of the real estate market should pay attention to adjusting measures to local conditions. It needs to analyze influence factors of all levels of the cities’rent-price ratio and develop more specific methods.