Research On The Effect Of Housing Prices On Urban Household Consumption

China’s economic development is at a critical period of transition to a consumptiondriven model.However,the residential income continues to rise and the residential consumption rate continues to be low.The release of residential consumption potential has become one of the important means to form the strong domestic market and promote high-quality economy.At the same time,housing is an indispensable part of the family,so it is worth-while to explore whether the high housing prices has hindered the release of residents’ consumption potential in China.Based on the related theories of consumption and wealth effects,this article studies the impact mechanism of housing price changes on the consumption of urban household residents in China from the perspective of household asset structure.This paper uses Chinese Family Panel Studies(CFPS)data to construct micro-panel data from 2010 to2016 to test whether there is a wealth effect at the household level for rising housing prices;further,to analyze household asset structure,this article uses a non-parametric Bayesian model based on several variables such as household income,housing,and financial status,and the paper examines the effect of housing prices on household consumption of households with different asset allocations.Results show that the impact of rising housing prices on household consumption is generally weakly positive,indicating that the role of household consumption is limited;while rising house prices have significantly squeezed non-residential consumption expenditures of households without home ownership.As a result,the effect of rising house prices on the consumption of households owning their own homes is also constrained by factors such as “heavyweight” housing investment behavior and capital liquidity.Further research finds that households with one or two homes have diverse asset allocation structures,and households without consumption constraints are more willing to increase consumption expenditures when housing prices rise;while households with three or more homes face fewer consumption constraints,the high proportion of housing assets make them more inclined to curb household consumption.It indicates that there is a possibility that "loadbearing" housing investment behavior may hinder household consumption.This article reveals the direct effects of housing prices and family housing consumption concepts on consumption of urban households in China’s economic and social environment.It aims to enrich the development of consumer behavior theory and provide a new perspective for real estate market policy formulation in China.This article suggests focusing on the optimization of household assets and the role of the housing purchase restriction policy,and controlling the stability of the housing market to guide residents to the correct concept of housing consumption and investment,to promote the optimization of China’s consumption structure.