Housing Purchasing Power Of The Policy Analysis In China's Urban Lower-middle Class

With the income gap between urban residents and the housing market, as well as the continuing rise in house prices in recent years and structural defects in housing supply, China's low-income groups in cities and towns are facing a serious problem of housing affordability. How to solve China's urban housing problem of lower-middle class has become an urgent social problem, it is a direct impact on social stability and economic sustainable development.In this paper, based on supply and demand theory of economics, it takes the China's urban lower-middle class earning as the research object, it uses the indicator of price earning ratio to measure the issue of China's urban lower-middle class housing purchasing power. It has done the related research and the analysis from the following aspects: First, based on the market supply and demand theory, it has carried on the analysis to China's urban housing market in the supply of lower-middle class at present situation, as well as an analysis of the status of the supply structure; Second, the use of housing price earning ratio theory, analyzes and studies the present situation of China's urban lower-middle class housing purchasing power, demonstrates the present purchasing power is limited. Third, unifies China housing market mechanism and the housing system, analyzes the influencing factor of China's urban lower-middle class housing purchasing power. Finally, for the present constraint on the main factors of China's urban lower-middle class purchasing power, proposes solutions to specific programs and proposals, attempts to provide the help of formulating policies for the relevant departments, adjusting the plan.Solution to the problem of majority of China's urban lower-middle class housing can not be completely dependent on market mechanisms; the establishment of a perfect housing supply system taking into account both economic and social aspects is imminent; but to achieve a reasonable housing price earning ratio is the fundamental of improving China's urban lower-middle class housing purchasing power.