Research On The Impact Of Housing Prices On The Upgrading Of China’s Consumption Structure

Since the implementation of the housing system reform in 1998,my country’s real estate market has entered a rapid development track,and the price of residential commercial housing has risen significantly,from 1,857 yuan/square meter in 1999 to 9,857yuan/square meter in 2020,an increase of 5.3 times.This phenomenon has become a hot spot and a focal issue widely concerned by all sectors of society.During the same period,with the economic and social development and the continuous increase of income,residents’ consumption has been upgraded from subsistence consumption to development and enjoyment consumption.At present,it is an important period for my country to expand consumer demand and give full play to the fundamental role of consumption in economic development.Research on whether and how high housing prices affect the upgrading of residents’ consumption structure is beneficial to the government’s policy on housing prices according to the place and time,so as to effectively Give play to the positive role of housing prices in promoting the upgrading of residents’ consumption structure.This paper sorts out the relevant literature on the relationship between housing prices and residents’ consumption at home and abroad.Based on the life cycle-persistent income theory,this paper discusses the long-term impact of high housing prices on the upgrading of my country’s residents’ consumption structure.With the help of 20 years of panel data from 31 provinces,autonomous regions,and municipalities directly under the Central Government,the empirical characteristics and facts of core variables such as urban and rural residents’ consumption structure and housing prices in my country are analyzed,and the reasons and mechanisms of how housing prices affect the upgrading of residents’ consumption structure are explored.In terms of empirical analysis,the first is to establish a two-way fixed utility model to analyze the overall,structural,and regional differences in the impact of rising housing prices on the upgrading of residents’ consumption structure.,the range of the wealth effect and crowding out effect on the difference in the upgrading of residents’ consumption structure.Research conclusions: First,there are differences in the impact of housing price rise on the survival consumption and development enjoyment consumption of Chinese residents;second,the impact of housing prices on the internal structure of my country’s residents’ development and enjoyment consumption expenditure is different between urban and rural areas,which is reflected in the urban and rural residents’ consumption.Education,culture,entertainment and health care consumption have a stronger response to it,while rural residents have a relatively weak response;third,there are regional differences in the impact of rising housing prices on the upgrading of the consumption structure of Chinese residents;fourth,the relationship between rising housing prices and the upgrading of urban residents’ consumption structure There is an inverted U-shaped relationship,and there is no threshold effect in the rural residents panel.Therefore,the government should increase residents’ income in multiple ways and reasonably regulate housing prices;tap the consumption potential of rural residents and stimulate new impetus for the upgrading of residents’ consumption structure;housing price regulation must be adapted to local conditions and cities;and the wealth effect of housing prices on the upgrading of residents’ consumption structure should be effectively brought into play.