An Empirical Analysis Of The Demand For Housing Attributes In Chongqing

After more than 20 years' housing innovation, Chinese housing system is developing stably now. In July 1998, the State Department of China issued "An Notify about Deepening the Housing System Innovation ", and decided to practice the hosing classical supply system. This document told us China would develop the housing industry mainly by market mechanism, and partly by the macro control of government and the welfare housing system. All parts in the housing industry should know well about housing demand and its customer's behavior of the city. But at present, there is no empirical analysis in this topic and just describing analysis is not enough.This dissertation estimated housing demand elasticities, mainly the income and price elasticity, separately in rental and dealing market. The date in this dissertation is from a spot check of households in the main city zoon of Chongqing. We collected data on two aspects: one is the general data of the family; the other is of its house. Based on an adaptation of Rosen's two-stage model, we set up the model of the demand for housing attributes in Chongqing. Then estimated the coefficient in the model with the data we have collected and got the income, price and other elasticities of the demand for housing attributes in Chongqing.This empirical analysis reveals that the most important determinant of the demand for housing attributes is income, and price in the second place. Other determinants, as age or gender of household head, which reflect the test of customers, have a little influence. The absolute values for income and price elasticity of demand for housing area attribute in Chongqing are both less than one. The income elasticity is mainly between 0.4 and 0.6, and price elasticity between 0.2 and 0.3. These indicate that the demand for housing attributes is inelastic in Chongqing.In addition, the paper discussed the mathematic form of the model and the definition for the income variable. After using linear and log form, we found the elasticity of demand for housing attribute, especially the price elasticity and income elasticity, vary a little with the different mathematic form of the model. For the aspect on the definition for the income variable, permanent income got a higher R2 and came out a bigger income-elasticity than current income.