Research On The Impact Of Housing Wealth On Household Consumption In China

In recent years,with the continuous growth and improvement of our country’s total consumption,the driving force for the development of our country’s economy has gradually shifted from export and investment to consumption.However,the proportion of consumption in GDP has been far lower than that of general developing and developed countries,and even declined for a long period of time.There is huge space and potential for boosting our country’s economic growth by improving the level of consumption.Along with the hypergrowth of the housing industry,a surge in the prices of residential commercial housing.On the one hand,the housing wealth of households with houses continues to appreciate,and on the other hand,newly purchased houses and real estate exchanges have become a heavy burden for many families.Consumption issues and housing issues are not only important issues facing our country’s macroeconomic development,but also related to the immediate well-being of the ordinary people.They directly affect the people’s sense of happiness and gain,and are highly concerned.Many people and scholars believe that housing issues may affect consumption,and have carried out a series of studies on this,but the conclusions are quite different.Clarifying the impact of housing on our country’s consumption can not only enrich and improve the research results of the relationship between housing and consumption,but also has important theoretical value,and can also provide policy reference for our country to regulate real estate,improve consumption structure and promote consumption upgrading.Based on a review of relevant consumption theories,this paper draws on and refers to relevant research literature to deduce a theoretical model of the relationship between housing wealth and household consumption,and then design an empirical model.The panel data constituted by the CHFS survey is used to empirically analyze the existence and magnitude of the housing wealth effect.First,analyze the relationship between housing wealth and household consumption for all households,and judge whether there is a housing wealth effect and the size of the housing wealth consumption elasticity of the whole sample.Secondly,it focuses on analyzing the relationship between housing wealth and consumption of households with houses,including the size of the housing wealth effect and the impact of the housing wealth effect on different types of consumption and consumption upgrades in the family.Finally,this paper conducts a heterogeneity study on the housing wealth effect of house-owning households from multiple perspectives,such as the region where the family is located,the type of city,the number of houses,the proportion of housing assets,the level of household income,and the age difference of the head of the household.The study found that housing wealth has a significant role in promoting household consumption in my country.The increase in housing wealth will not only increase the total consumption and various types of consumption of the household,but also reduce the proportion of household non-subsistence consumption,and promote the adjustment of household consumption structure and upgrade.Heterogeneity studies show that the housing wealth effect is significant in the eastern,central and western China,but not in the northeast region;the housing wealth effect in first-tier cities is smaller,only half of that in second-and third-tier cities;the housing wealth effect of multi-suite families is significantly greater than that of one-suite families;the housing wealth effect is positive for families with low and medium proportions of housing assets,while the housing wealth effect for families with a high proportion of housing assets is negative;the housing wealth effect varies with the difference in the age of the head of the household.For households whose heads are younger than fifty,the housing wealth effect is not significant;for households with heads are in his fifties,the housing wealth effect is significant and strong;for households whose heads are older than sixty,the housing wealth effect is significant but weak.Our policy recommendations are:(1)Stabilize housing market prices,form reasonable expectations,prevent housing market prices from rising too fast or falling sharply,and continue to exert the wealth effect of housing assets for a long time.(2)Implement policies that are tailored to local conditions and cities,and implement differentiated real estate control policies.Colleagues will coordinate and implement other control measures to improve the attractiveness of talents in the region.(3)Continue to develop and improve the real estate financial market including housing mortgages,revitalize housing assets,and further release the effect of housing wealth.(4)Introduce refined preferential policies for house purchases,and increased subsidies for housing purchases based on rigid needs have promoted the realization of housing,expanded the coverage of housing wealth effects,and promoted consumption.