A Study On Policy Of Affordable Housing In China Based On Filter Theory

How low-and-medium-income population can afford to buy a house is always amajor issue of any country, relating to the sustainable economic development andthe social equity. With the widening of the income gap, the rapid urbanization andthe housing market-oriented reforms, the housing price has risen to a higherposition in the past10years or so; housing supply structure is moving towardshigh-end; and many low-and-medium-income residents are still unable to have a setof desirable house. In this background, the research of how to use the housingguarantee policies to address the housing problems of low-and-medium-incomegroups is important in theory and practice.Similar to the basic idea of the filter theory, the nature of the housing guaranteeproblem can be summarized as the dynamic matching of the housing level and theincome level. With the filtration process of the housing market as the starting point,this study constructs a model based on general equilibrium theory, analyzes thefiltration process of the housing market in the full market state, and sums up theindependent and the consolidated features of two types of guarantee policies.In China, the over-prosperity of the real estate market, especially the high-endreal estate market and the slow development of the affordable housing co-exist. Theanalysis results show that the widespread speculation in the real estate market andthe housing market bubbles thereof have played a huge role in pushing up thehousing prices and resulted in the rapid spread of the non-rational investmentbehavior from the high-end real estate to the low-end real estate in time and space,leading to the filter blocking of the current housing market, i.e. the high-end realestate is difficult to filter through the market to achieve the quality decrease to getinto the low-end market.In the blocking case of the natural filtration in the housing market, themismatch of the residents’ income levels and housing supply levels is main cause ofthe housing guarantee problems, a direct manifestation of which is the low housingaffordability of the objects. Therefore, we compare and analyze from the viewpointsof time-space changes, the regional differences and the income differences betweenclasses and attribute the six impact factors of the housing affordability to the cost ofhousing, economic fundamentals, the national credit policy, the accumulation ofhousehold wealth, the national housing guarantee policies and the householdconsumption structure.Finally, considering the status of the filter blocking of China’s housing marketand the dynamically changing conditions of the housing supply structure, we set the improvement of the housing affordability as the goal, smooth the housing marketfiltration process, adjust the housing supply system and discuss how to developsuitable China’s housing guarantee policy.The main innovative work of this paper is the construction of housing marketfiltering model based on general equilibrium theory; the analysis of the current filterblocking phenomenon of China’s real estate market and the corresponding housingpayment difficulties; and the proposed Chinese housing supply system andsupporting measures.