Beijing Urban Residents In Housing Affordability Study

With the development of economy and accelerated process of urbanization, there are some problems with Chinese real estate market, such as the pronounced rise of the housing price. Currently, some urban residents are unable to afford the housing. The major issue what government has to settle is how to improve housing security system to resolve the housing problem of the poor people. The premise of government making the policy is to fully understand housing affordability of the residents with different level of income.Based on qualitative analysis, this paper adopted House Price to Income Ratio and Residual Income Approach to study the housing affordability of the Beijing residents. Using the data which selected from Beijing Statistical Yearbook, this paper indicates the movement trend of Beijing residents housing affordability from 2001 to 2009. The housing affordability of the residents in Beijing presented deteriorating trend and the difference between the rich and the poor is more and more obviously. The government can define the poor people who are facing housing problem according to the calculation results. The government should provide the low-rent house to the family with income less than 3030 RMB. The conclusions in this paper was hoped to be as the reference for the government to develop a multi-level housing security policies.