The Research Of Housing Price-to-Income Ratio On Chinese Housing Affordability

With the development of market economy and the accelerated process of urbanization, Chinese real estate market is gradually emerging a series of outstanding issues. Such as real estate investment is overheated, housing prices raised too quickly, the real estate market disorder, etc. Attracted extensive attention from the whole society, and thus lead to all sorts of unfavorable economic and social development of Chinese contradictions. This paper bases on the housing price to income ratio theory, and apply theory with practice, qualitative analysis combined with quantitative analysis, to analyze the PIR of whole country. Dealing with the data from National Bureau of Statistics of China, the rational range about house price-to-income ratio is fixed to 12, which is higher than the international standard. Selecting the first-tier and some second-tier cities with a representative of a typical city, calculate the ratios of these cities for comparing, different cities have different PIR, the ratios of the six cities are all higher than the average.Different income people also have different pressure with housing. High income can effortless burden housing, but the low one can burden hardly. With the real estate market a variety of problems, Chinese urban residents increased housing pressures are growing, especially for low-income sectors is concerned, rising house prices and income levels of residents in a serious imbalance. The paper compares the PIR with GDP and PCDI to improve that the price of the housing rises quickly. At the last take Xi’an real estate market for example, the fact is housing price in Xi’an also high than the average level of country. To protect the interests of low-income and to solve the housing difficulties of low-income groups, it is time to take some steps to make the real estate market remains healthy and orderly development to accommodate a socialist harmonious society, a necessary requirement.