Countermeasure Research On Developing Public Rental Housing

Since the monetary reform of housing in1998,the housing supply system has been established in china which include commercial housing, economically affordable housing, price limited commercial housing, and low-rent housing. This housing supply system provides different types of housing for different income levels. However, in recent years, the housing prices, especially in the large and medium cities, rapidly raised. Urban housing prices are too high to afford for the ordinary residents who possess the general income level. The lagging of the security function in real estate market has been exposed. Residential housing has become one of the outstanding problems in social life. Especially the vulnerable groups such as low income stratum, whose housing problems are the focus of the society. Outside of the current housing security system, which focuses on low-rent housing and affordable housing, there is a group who not only applies the low-rent housing, but also shouldn’t buy affordable housing and real estate. Effectively solving the housing difficulties of the sandwich class becomes an important part of building and improving the housing security system. It is a new topic for all levels of government. Public rental housing is mentioned in this background, improving the system of public rental housing and solving the housing problems of the sandwich class deserve us to seriously research and explore.Public rental housing is considered as the research object in the paper. Public rental housing is positioned to solve the housing problem of the sandwich class. This paper describes the development history, present situation, research status and development meaning of public rental housing; meanwhile we define the concept of public rental housing and sandwich class. This paper provides theoretical support for the necessity of developing public rental housing according to economics theory. Rational transactions theory in institutional economics becomes one of the theoretical supports to the development of public rental housing. We determine the rent of public rental housing according to nominal sales price of the public rental housing determined by cost-plus pricing method and a reasonable rate of rent and sale. This can provide a new method for the government to determine the rent of public rental housing. We draw on the international experience in the rental housing system in and summary of the research on home and abroad scholars Research and abroad, housing security, and to provide policy recommendations to improve the system of public rental housing to solve the housing problems of the sandwich class. The guiding ideology of public rental housing should be market-oriented policies. The corresponding model is the social model of the integration of cost and profit-based rental housing.