Real Estate Prices On The Influence Of Chinese Residents' Consumption

Since the1980s, the impact of asset prices changes such as stocks and housing on consumption in the market economy has become more and more significant, causing the widespread concern of economists. China, since the1998housing system market-oriented reforms, the real estate industry has become a pillar industry of national economy, an important source of economic growth and domestic demand promotion. However, in recent years, China presents a consumer phenomenon that consumption rate of Chinese residents is decreasing which should be tackled for economic growth. Therefore, real estate prices have a profound impact on China’s consumer.Foreign studies on house price and consumption relations provide good examples for the study of Chinese residential consumption problems. Based on theory of consumption function, this article tells the mechanism how house prices affect residential consumption and make useful policy recommendations.Domestic research focuses on effects of price changes on the total consumption, but how does the effects change between families holding house and families holding no house? How does the effects change among families of different age, different education background, different capital flow rates, different type of work? Here is the development of this article. Making use of chips data, we look further into the relation and these factors from an empirical point of view. Discussion risen from this micro level should be more solid and specific to promote China’s economic development and improve people’s living standards.