Research On Current Policy Of Affordable Housing In China

With the rapid development of economic and acceleration of urbanization process in china, the houses' prices are soaring. The housing difficulties of low-income families are becoming more and more serious. In order to solve this problem, the government has been committed to the construction of affordable housing in recent years, and they expand the scale of affordable housing's construction in the past two years. Affordable housing has many features, including not only externalities, welfare but also exclusive, so it belongs to mixed-goods. In the process of china's economic development, affordable housing institution has undergone continuous development and improvement. At current, china has formed many-levels supply system of affordable housing basically, including affordable housing, price-controlling housing, low-rent housing, public-renting housing and so on. In 2009, Ministry of Housing and Urban-rural Development planed to build 2.6 million units of affordable housing, and 5.8million units in 2010, this number increases to 10million units in 2011. The sum of three years'construction reach to 18.4 million units. In addition, Ministry of Housing and Urban-rural Development increase the intensity of inspection of local government, and the completion of affordable housing task concerns the assessment of local government. They expect to promote the construction of affordable housing according to this inspection. With the increase of affordable housing's number of construciton in china, it will take an important role in Twelfth Five-year Plan Period, so studying on affordable housing has very important theoretical and practical significances.According to experiences in the past, even though the number of affordable housing they plan to build is huge, but the completion is not ideal. At the same time, there have been many problems in the process of construction and distribution of affordable housing. For example, the quality of affordable housing is very bad at some places; the rich can buy affordable housing but the poor can't; in order to get the certification of affordable housing applying, some people decrease their own income deliberately. The problems in construction and distribution affect the efficient of affordable housing, and it is unfair to low-income groups. The problems of affordable housing makes people began to question. Basing on this macro-policy background, this paper research deeply into affordable housing policy of our country, and give the potential causes of these questions according analysis of economic. This paper focuses on analysis of the problem, and referred to Singapore and Hong Kong's experiences as reference simply. I hope the result of this study can provide policy-makers with new ideas to solve the problem, and can make contribution to build a harmonious society in our country.This paper includes the following parts:Part I:At first, it points out the macro-background of this research, theoretical and practical significance; then I summarize the results of research in this area at home and aboard; at last, I point out the methods of study and main contents.Part II:This paper defined and compared every form of affordable housing in our country, including their advantages and disadvantages, applicable conditions, market effect, the source of money, land-supply and so on. Then it analyze china's affordable housing policy's development since Reform and Opening-up. The development of affordable housing undergoes four stages. The passage summarize three features of current affordable housing policy in our country:At first, affordable housing will take an important role in real estate market of our country. The second, the quantity of affordable housing is decreasing and low-rent housing's construction is speeding up. The third, there are many problems in current affordable housing policy of our country. PartⅢ:This part is the main body of this article. Taking affordable housing and low-rent housing for example, this section analyze the efficient of them by Rationing by Waiting Model and Price-controlling Model, and point out the reason of low efficient in the allocation of affordable housing. At the same time, this paper compare Monetary-kind Subsidies' efficient to House-kind Subsidies', which are used widely in our county now, and point out the problems.PartsⅣ:According study, the paper get the results of eight problems in affordable housing of our country, they are abusing of power, application fraud, high cost of identify, poor quality of housing, high maintenance costs, not perfect exit mechanism, insufficient funding and less land-supply.PartⅤ:This paper get the enlightenment according to analyzing Singapore's existing policies, the paper get three advices:the first one, we should form a special organization, and this organization can build affordable housing in the name of government; the second one, we should set more practical rules for exit; the last one is perfect subsidy system. By analyzing Hong Kong's policy, we get results:the government should transform their functions in carrying out policy, from housing-supplier to housing-coordinator. At the same time, in order to get more money resources, we should encourage high-quality residential market's development.