The Study Of Taiyuan’s Rental Pricing Of Public Rental Housing

The standard-setting price of public rental is unreasonable. The reason of themicro-level is that there are no comprehensive and integrated systems so that thepricing method is not scientific. Only one or two factors are considered to form therental standards. Sometimes only consider the cost or the income differences.sometimes the price is set only according to the market rental price falling to a certainpercentage. From the macro level, the key factors affecting the rental standard are notselected accurately. The price can not be set from different times and different areasdynamically. In particularly the lack of quantitative analysis eventually lead to theunreasonable rental price range, and the security and sustainability of the housingpolicy is not taken into account.The public rental houses in Taiyuan are started now with incomplete relatedpolicy. there are no sound and reasonable pricing models as a basis for setting prices.The paper compares the advantages and disadvantages of several rental pricingmodels in current theoretical circles, analysises the situation of the rental housingprice at home and abroad, then to from a more comprehensive pricing mode suitablefor public rental houses in Taiyuan. This can provide effective reference for other cities in the pricing practices of public rental houses. It is also beneficial to thefairness principle in the social security system, social harmony, political stability andeffectiveness in stimulating economic development. It promotes healthy, stable,harmonious and orderly development in the real estate market at the same time.The writer compares the benchmark rents and the cost rent, market rent tomeasure the rent reasonableness, then adjusts dynamicly the rent of public rentalhousing from the multiple linear regression model on macro-level. The benchmarkrents as affordable rent is calculated based on the ability to pay of protection groups.The cost rent is calculated on the theory of rental value structure. The former choosesthe household income per month, housing area, household population and regionaldifferences to caclulate the specific rent for a home in Taiyuan. It is based onmicroscopic and static level. The latter chooses four factors such as the non-nativeresidents proportion, disposable annual income of urban residents per capita, GDPper capita, and the total investment in fixed assets as the influencing factors formarket rent in a city to get the market rent multiple linear regression equation. Thenthe new market rent is predicted based on the four independent variables changing inthe future of taiyuan.At last the reasonable rental range of public rental houses in Taiyuan is obtained. This is based on macro and dynamic level.The price of public rental houses should follow these principles:micro-levelrental price should ensure the funds recyclable in line with capital preservation andsmall profit principle; the rent levels should implement differentiated assurance; themarket rent of similar houses in same districts should be considered; the interests ofgroups in protection, the government and real estate developer should be taken intoconsideration; it also should be consistent with the local macro-economicsituation.Finally, the paper summarizes considerations of the micro and macro modelin the practice of public rental houses pricing, and the shortage of study. It proposedthe idea of running the unification of security houses in different types in the wholecoutry.