The Influence Of Chinese Urban Housing Supply Structure

Along with the rising of the housing price, the government had tried to introduce kinds of policies to control the housing price, and adjusting the supply structure is an important part, in China, to adjust the supply structure meant to increase the quantity and the rate of the low and medium-grade houses and to limit the developing of the high grade houses.However, in1998we reformed our housing system, and after that our supply showed a trend that the quantity and the rate of the economically affordable houses-the most important kind of houses for the low income group, were falling down. And we thought that maybe such a kind of supply structure is one factor that impelled the housing price.Our model showed that if the housing consumers’preference to different kinds of houses are indifferent or they did not show extremely strong preference to some kind of house, when the rate of the economically affordable houses rose, the housing price would fall down, and when the rate of the high grade houses increased, the housing price would rise. This showed us that theoretically speaking, to adjust the supply structure is really an efficient way to control the housing price.But the empirical evidence showed us that the existing supply structure just got limited capability to control the housing price, and the economically affordable houses could not played its role as security rooms well. Meanwhile, the high grade houses can well impel the housing price, so the housing price rising in our country was some kind of "structural rising". The existing supply system could also affect the expectation to the housing price with sending a bullish signal to the housing market. So the policy which wish sending bearish expect to the market according adjusting the supply system mainly failed.And at different periods and different regions, the influence of the supply structure to the housing price was not the same. From1999to2010, the supply structure played a better role to in controlling the housing price in the period from1999to2004.And for different regions, the supply structure played a better part in controlling the housing price in the western region. The other factors which could affect the housing price told that income was always one of most important factor, whose influence was much stronger than the cost’s. And the increasing of the population could not impel the housing price all the time, which told us that investment demand in our housing market was increasing, and this matched the truth that expectation of the housing market was going to be more and more important. Finally, the interest policy showed complicated influence to the housing price.