The Study Of Urban Residents’ Price Earnings Ratio In Nanning

Price earnings ratio is the most important indicator to determine the price level and to measure the purchase of residential housing ability. After the 1998 house reforming, Nanning real estate prices is overheated with the development of real estate market and continuous improvement of income levels.High real estate prices bring high irrationally price earnings ratio,also because of the high price earnings ratio, which resulting in the distribution of social wealth injustice, more inhibited housing needs that to improve low-income groups and rigid demand are suppressed. Therefore, under the current circumstances,to ensure the prices of housing affordability and balance the development of the different levels of economic and different social development levels of the residents has become a hot topic to the community of scholars.By combining our practical, we calculated on Nanning price earnings ratio which include the static and dynamic indicators of housing affordability in order to reflect market developments of the real estate and the development of urban residents conditions in Nanning. We also improved the housing purchase model, which considering inflation and income growth and house price changes, and based on housing loans to the starting point, in order to measure the fair price earnings ratio.We base on range of qualitative data,from a variety of aspects to analysis the housing market in Nanning status,through quantitative methods we base on the different levels of income of urban residents to analysis the reasonable price earnings ratio range.The Studies have shown that:firstly,the static price earnings ratio which look from Nanning nearly nine years of residential real estate prices are relatively higher, low-income family housing affordability is serious shortage, while middle-income and high-income households which for residential real estate with overall purchasing power, low income and less income class of affordable housing have some purchasing power; secondly,watching from the dynamic price earnings ratio,we can find the overall population of Nanning disposable income growth is higher than the housing prices growth rates, the housing affordability has improved; thirdly, from improved model point of view, the Nanning City of low, medium, and reasonable price earnings ratio in urban residents families were 4-9 times,5-13 times and 3-9 times.The current low-income families in Nanning has not yet reached a reasonable price earnings ratio range. For the empirical results, government should do their best through the four field which involve promoting the prices reasonable regress, housing supply, housing consumption and income distribution to improve Nanning urban residents price earnings ratio and safeguard the healthy and orderly development of the housing market in Nanning.