Government Factors Of Housing Prices

Nowadays,the problem of high housing price has become a restrictive factor ofrapid urbanization process and coordinating social development. For this,the main pointof the community and academia is that local government factor is the real driver of highhousing prices. Then is local government whether or not affect determining system ofhigh housing prices, what is the impact and to what degree can the local governmentdrive the housing prices? Recognizing these problems is very inportant.In this paper, based on the triple functional role of the governmant,we confirm thegovernment factors of the high prices.Through empirical analysis based on35cities, wedemonstrate the effect of different channels.After that,we make the in-depth study of themuch-criticized “land finance”.By doing this research,we understand the real role ofgovernment.The studies based on35cities have shown that as the player in themarket,the local government have driven house prices.Besides,as a market regulatorybody and deneral economic and social function,the role of curbing hign housing pricescan not play effectively.As a result,the combined effects of local government are theimportant driving force behind high prices.In addition,we find that the fundament cause of local government factor in housingprice is the given system,such as the decentralization pattern of China.So to solve thehousing predicament,we should straighten the system,improve the decentralizedmodel,adjust the distribution pattern between the Central and local governments,andperfect system design.Due to the transmission path of government factor is themonopoly power factors,it will bring a series of serious consequences.As a result,itshould be solved quickly.These facts are very important to our understanding of highhousing prices and strategies to control housing prices.This shows that this study support the government-drive “social consensus”.Socontrolling government behavior is an important entry point in controlling housingprices.It is crucial to note that specifying finance act of local government, clearing itsexpenditure responsibilities, eliminating the profit motive and financial pressure frominstitutions are the key to solve the problem of high house prices.