Comparative Study On Financial Mechanisms Of Affordable Housing Between China And Foreign Countries

As the enormous rise of real estate prices in recent years, the housing cost of domestic residents is getting higher and higher, low-income residents can’t afford commercial housing with their own income to meet their housing needs. So, their voices for affordable housing provided by government are becoming higher and higher. Central Government puts forward the goals of the construction of36million units of affordable housing in the "Twelfth-Five Year", which, to some degree, can meet the needs of low-income residents. However, the source of construction funds has been a serious problem for government.In the long-term, the source of China’s affordable housing construction funds is mainly composed of such channels as government budget, part of land-transferring fees as well as housing provident fund surplus. Even though Central Government attaches great importance to affordable housing construction, moreover, with the rise of housing price in recent years, local government also leases land at high cost and the fund of affordable housing construction is somewhat increasing, yet shortage of funds is still a arduous task for government. Therefore, building innovative financing mechanisms for affordable housing construction to ease the situation of shortage of funds is still difficult problem needed to solve urgently.This paper, based on difficult problems of current affordable housing construction, learning experience of affordable housing construction from western developed countries especially careful analysis on their successful financing modes, meanwhile, combined with the current situations of China’s affordable housing construction, proposes suggestions about new financing methods suited to China’s national conditions.