Study Of The House-Purchasing Power In Wuhan On The Basis Of Housing Price To Income Ratio

With the rapid developing of society and economy in China,people's life-level improved day after day. As a necessity that is closed to the people's lives,the housing got more attentions. It's more than ten years since the capitalization reform of housing distribution implemented in 1998. The housing market grow fast accompanied the housing price rising rapidly. Continuously rising house price has put a heavy pressure on more and more residents. The residents' housing purchasing power has become a publicly concerned issue.This paper utilized a lot of existing research documents,combining national conditions in China and the International practice,use house price to income ratio as an index to value house-purchasing power of residents. Firstly,it discussed the current situation of Wuhan city's housing market. It reviewed the housing constructions and housing system reform,analyzed the existing problem of present housing market. Secondly,based on families' income and their payment ability to loan,the paper established a house-purchasing power model, resulted the suitable scope of the house price to income ratio. Then,for different income levels,this paper calculated the house price to income ratio of the new house,the second-hand house and the economical house in Wuhan city's housing market. The analysis on the house price to income ratio showed that it is difficult for the middle and lower income families to purchase their house. Finally,the paper advised to improve house-purchasing power of Wuhan residents by means of housing supply,housing consumption and income of residents.