Research On The Effect Of Government Security Housing On Urban Consumption

Since1998, China has ended the welfare housing distribution system, and fullyimplemented the monetization of housing distribution. Since then, the housing markethas gradually complmented the transition from planning mode to marketing mode, andcomprehensively promoted the commercial era. From2003, after years of housingreform, China’s real estate market has rapidly developed; and the position of the realestate industry in the national economy has gradually risen. At the same time, residentsactively take part in the housing purchasing, and the whole living standards and qualityhas did significantly improved. But recent years, the sharply rise and volatility of thehousing prices produce some livelihood issues, such as difficulty in low-income familieshousing purchasing and expension of social wealth and distribution gap and so on. Thisis not only related to the injustice of the housing distribution, but also related to the basichousing requirement of mid-and low-income families. How to deal with these issuesappropriately affect the economic growth and social stabilization indirectly. High realestate price has stimulated us to explore the housing security system. After the allocationefficiency of housing resources guaranteed basically in system, accletating theconstruction of socalist housing security system to handle the fairness problem in realestate market has been the crucial issue in the next round of reform. Proper housingsecurity policies option have effected on consumer behaviors, that not only promote thelevel of consumption spending but also improve the consumption structure, leading toexpand domestic market demand and adjust the demand structure, and finally paly apositive role on sound and sustainable economic development.After systematically sorting of the relevant litetature on public housing expenditureand urban residents’ consumption at home and abroad, the paper has constructed thetheoretical framework to analysis of public housing policies on urban residents’consumption, and then makes use of the framework to empirical research as thefollowing:Chapter4thusing the panel data has empirically analysed security housingexpenditure effect on urban residents’ general consumption, housing consumption and household electrical appliances consumption. The conclusions that in terms of generalconsumption, under the control of population density, disposable income and residentialsales price, in the short term security housing supply will reduce general consumptionexpenditure of urban residents because of housing purchase expenditures crowding outconsumption, but in the long term security housing supply will promote the generalconsumer expenditure, and the long term effect is greater than the short trem, soincreasing the security housing supply will raise the consumption level. And in terms ofhousing consumption, under the control of disposable income, population and housingprices, whether in long-term or short-term, increasing the security housing supply has astimulating effect on the housing consumption, only the long-term policy have moreinfluence than the short-term. The household electrical appliances consumption of urbanresidents also has increased with the security housing supply and whether short-term orlong-term has shown an upward trend. The increase of the security housing supply willenhance the residential housing consumption rate, which inevitably affects the demand ofhousehold appliances consumption related to real estate industry. On the other hand,affordable housing supply has reduced the burden of housing purchase of urban residentand then released a large number of purchasing power, which makes households havemore disposable income to improve the environment and living conditions and promotesthe consumption of home appliances.Chapter5thhas empirically tested and analysis the impact of effect of real estateprice of security housing spending on urban residents’ consumption. Using time seriesempirically testing the impact of affordable housing on the growth rate of housing prices,we find that nomatter in the long term and short term, government security housingspending can reduce the growth rate of housing prices, which has illustrated governmentsecurity housing investment has positive role on control housing prices growth rapidlly.For the absolute value point view, affordable housing sales area and the price ofcommercial housing is highly negative correlation. The fact has shown that large-scaleconstruction of affordable housing can shunt market housing demand so as to declinehouisng prices. At the same time, the paper has supported the results that the wealtheffect of real estate in China is insignifcant, and maybe due to the high prices out of theresidents’ consumption. Chapter6thfrom the affordable housing supply perspective has explored the wealtheffect of threshold value so as to deepen the understanding of housing security to expandthe domestic demand. This paper adopts the nonlinear STR model, results showing that,affordable housing supply will make the wealth effect of the real estate price ‘V’ typereversal, namely, when the affordable housing supply is at low levels (less than4.03%),the wealth effect of real estate prices is negative, at that time, the going up of the housingprices will curb the consumption increasing; when the affordable housing supply is athigh levels (greater than4.03%), the wealth effect of the real estate price is positive, thegoing up of the housing prices will promote the consumption increasing.Chapter7thand8thhas discussed the impact of the investment effect andemployment effect of government security housing spending on urban residents’consumption. Security housing not only has changed the constraint conditions facingconsumers from micro-level, but also has influenced the private investment andemployment in macroeconomic field. Chapter7thhas focused on the investment effect ofaffordable housing. Using time series data, this chapter has analyzed affordable housingsupply in the long term would push private investment into real estata market, leading toconsumption promotion. Chapter8thhas tested the employment effect on consumption.Through the empirical analysis of panel data and absolute value analysis of input-outputmodel, we think out that the security housing construction can creat large new jobs andincrease the income and expand consumption.Chapter9thon the basis of the above chapters’ analysis has given the relevant policyrecommendations. The government must have a clear target popultion for securityhousing, reasonable planning and construction of the scales. And in the construction ofaffordable housing situation, real estate market must be ensured to operate normally so asto the security and the market combination.