To Analyse The Reason Of China's Residence Price Too Higher In Recent Years

Our country is in the stage of developing and completing of the economy market system. In 1998, the government started the policy of housing expense to develop the national real estate industry, and then the tendency that the national real estate industry grew with steady steps occurred. However, since 2000, the reality of the high price of housing led to overheat investment in real estate and the waste and low efficiency of using the related resources to a certain degree.From the economic analysis, price of commodity is decided by the relations of the supply and demand. It is a negative correlations to the price and the demand quantity, namely the price is higher, the quantity of demand is less. Since 2000, the price of housing rises rapidly, as a result, not only the demand of housing is not depressed, but also it expends and the price is on elastic. The rise of the price of housing not only affects the life of inhabitant but also leads to overheat invest in related industries, and at last it brings great harm to the steady, healthy and sustainable development of the whole national economy.Correctly judge and recognize the phenomenon of the higher price of housing, discovering the real reason of leading the higher price, realizing the balance of the supply and demand of housing, optimizing the effect of the government macro control, maintaining the stability and growth of macro economy and making a progress of the level and quality of inhabitance has a great significance.