The Research On The Effection Of The Incoming Gap On The Demand For Housing

As a special commodity, Residential has both consumption and investment properties (consumption and investment demand). The relationship between housing investment demand and price fluctuations is complex, they mutually promote and facilitate.The rise in house prices will give profit gains to the investor, such gains will re-investment. According to the the classic housing needs of the two-stage model, the demand for housing is decided by all the variables reflect economic fundamentals, household income is one of the key factors. Facing the fact of the income gap continues to expand and house prices rising, different income levels have purchasing power, the purposes of purchase are also different, so the effects of income gap to consumption demand and investment demand are different.Therefore, this paper combined with the reality of widening income gap, analysis housing consumer demand and investment demand, as well as the research on the effection of the incoming gap on the demand for housing to make a reasonable explanation on the demand for the housing market to provide a realistic basis for the development of rational real estate control policies. Firstly, put forward the background of the topic, the purpose, significance of research ideas and methods. Then conclude and summarize the existing research literature, and give a brief comment. Then describe the gap between income and housing demand, and analysis the mechanism the effect of income gap on the demand for housing. Further establish a theoretical model, conclude that the income gap affect the demand for housing by housing price. Thus, concluded by an empirical analysis:(1) In the model of living type, the impact of income on the form of dwelling is significant, with the increasing in income, homeownership rate is higher.(2) In the model of the housing needs, the high-income people is significant, but also shows the impact of income on the housing needs is complex, not only consider the income of the current period, but also consider pre-income and wealth accumulation condition. Meanwhile, household registration, education and other factors are also highly relevant.(3) It is important to point out is that the expected price in two models were significant. Expected utility of the current real estate market is growing, the price appreciation is expected to reduce the cost of homeowners, the higher the value-added expected, the lower the annual cost of homeownership, owning is more cost-effective than rental housing, while investment in housing can play a role in the appreciation of the value of their investment, increasing residents’ demand for housing investment.Finally, based on the empirical conclusions, putting forward that the Government should address the status of the different income groups, consider the impact of the social income gap into the decision-making framework to formulate scientific and reasonable measures, so as to promote healthy and stable development of the real estate market. Policy has three main points:First, adjust the pattern of income distribution to narrow the income gap; Second, inhibit investment demand to support the home-user demand; Third, improve housing security system to meet the demand for the purchase of ordinary residents.