Effects Of Housing Price Changes On Urban Residents' Consumption In China

To improve people's consumption capacity,the general office of the state council adopted document no.66 of the state council in July 2019,providing policy benchmarks for further promoting consumption.Housing is an important asset in a household,and its price change is an important factor affecting the consumption level of Chinese residents.In 2016,housing value accounted for 74.6% of the total assets of Chinese households.According to the life cycle consumption theory and LC-PIH theory,we can infer that when household assets change,household consumption level will also change,and housing assets account for a considerable proportion of household assets.The change of housing price is likely to affect residents' consumption expenditure by changing the total asset level of residents.Housing is a special kind of commodity,both investment and life durable properties,therefore,housing price increases on the one hand,will enhance the level of the wealth of the residents and promote consumer by the wealth effect,on the other hand,plans to buy the family will also reduce by crowding out housing prices rose in the housing consumption spending,obviously,analyze the relative size of the two kinds of effect,clear influence on consumption,housing price change to play a role of consumption to the economic growth of our country are instructive.Based on Chinese family tracking(CFPS2010,2012,2014,2016),using the unbalanced panel data of data extraction,first studied the prices change on the overall impact of urban residents in China consumer spending the whole samples,then for different per capita housing area,different number of housing and the mortgage conditions of family to analyze the structural impact consumer spending,the quantile regression method is used to investigated the housing price changes with different consumption level,the differences of family influence.The conclusion of this paper shows that the increase of housing price can promote the consumption expenditure of Chinese residents.The promotion effect of the family withsmaller per capita housing area is smaller than that of the family with larger per capita housing area.Housing price rise has different impacts on different consumption families.The lower the consumption level,the weaker the promotion effect of housing price rise on their consumption;the higher the consumption level,the stronger the promotion effect of housing price rise on their consumption.The policy enlightenment of the research conclusion is as follows: first,it can be seen from our research results that household housing loans can increase the promotion effect of housing price rise on residents' consumption.Therefore,the construction of China's housing loan-related financial system should be accelerated to provide convenience for residents' housing loans.Second,because low-income people are more squeezed out by rising housing prices,home purchase restrictions for low-income residents should be reduced and housing costs should be reduced.Third,it can be seen from the research conclusion that the rise of housing price has a promoting effect on residents' consumption in general,so the market regulation should play a role in the real estate market and avoid the situation that the housing price drops sharply by human intervention.