Our Price Earnings Ratio Analysis

House is the basic living subsistence for the residents. The problem of the house is a greatly social concern. Ensuring residents' house right and improving residents' living conditions have an inestimable function for an economic development and the social stability. With the end of housing distribution in our country, the new stage of housing commercialization comes in. The great policy has already begun to challenge the housing industry. In the face of the implementation of housing commercialization, it is the central problem in the housing industry whether the urban residents in our country have the ability to adapt to this challenge.This paper introduces the index of house price-income ratio and exerts it to analyze our country residents' house-purchasing power. The paper includes five parts:The first chapter presents the relevant questions about the index of house price-income ratio. First, it analyses the background of putting forward the index. Second, it presents the definition of house price-income ratio. Thirdly, it sets forth the formula to house price-income ratio and unifies the calculation requirements of the index. At last, it summarizes the characteristics of house price-income ratio.The second chapter introduces the level and the change of housing price in our country, and analyses the factors which have effects on housing price in terms of its components.The third chapter introduces the level and the change of residents' income in our country, including the state of residents' disposable income, the state of residents' deposit, the state of residents' consumption expenditure and consumption structure in our country.The fourth chapter analyses the urban residents' house price-income ratio in our country. The reform of housing system and housing finance in our country offers thepossibility for analyzing house price-income ratio. According to our country's actual conditions, the rational range about house price-income ratio is fixed to 3-9. At last by positive analysis for Beijing, we can conclude that residents in Beijing have the house-purchasing power on the whole. But we also discover that some residents in Beijing have not the house-purchasing power through taking different income groups and different house types into accounts.According to above research, the paper puts up forward strategic plans to make a better development on our country's housing industry.