The Analysis Of Housing Affordability Of Wuhan Urban Residents

During ’Eleventh five year’ period, the real estate industry of Wuhan city being maintained rapid development, living conditions of residents also being kept improving. Hoever, the healthy and stable development of the housing market being affected by number of factors, such as:the irrational housing supply and demand structure, the rapid house prices growth, the wealth gap between the rich and the poor and etc.This article studied Wuhan urban residents’ housing affordability, and calculated the housing standards. At the beginning of the article, the definition and calculation methods of housing affordability were introduced. And then, analysis was carried out based on the Wuhan City housing market supply-demand situation and existed issues. In the main body of the article, all income groups of urban residents’ commodity house affordability in Wuhan2011was quantified by following three methods:1. The static house price to income ratio calculation method;2. Residual income approach;3.Housing affordability mismatching calculation method. It reflected that there is a huge affordability gap between high-income class and low-income class. The demand-supply shortfall in the structure of commodity housing was also quantified.In the meantime, three calculation methods were employed (1. The static house price to income ratio calculation method;2. The dynamic house price toincome ratio method;3. Residual income approach.) based on90m2commodity house to calculate and analyses housing affordability for all income groups of Wuhan urban residents and find out the factors that vary each income class’ affordability, and then defines the group of residents who are in the top priority need indemnificatory apartments. The static house price to income ratio calculation method and residual income approach were used to measure the affordability of mid-low income class group to indemnificatory apartment. The quantitative estimation result for maximum affordable housing price per unit is3528.12(?)/m, and reasonable standard housing residential area range is52.37-62.82m2. If gradually increase the per capita household disposable income standard to approximately900(?), then more low-income residents could be included in the indemnificatory group. According to the policy of ’Pay first, Replay after’, the maximum affordable monthly rents to public rental house are:26.28(?)/m2,39.45(?)/m,39.28(?)/m,39.87(?)/m2for low-income family, mid-low income family, mid-income family and families which has extreme bad housing situation. The subsistence allowances standard for the residents of centre city should be set above470(?), rent allowances of low-rent apartment should reach above23(?)/m2per person. At the end of article, four approaches of increasing urban residents’ housing affordability were proposed:Adjust structure of supply-demand structure; Taking some measures to stabilise property price; Control the income of high-income families; Increase the income of low-income families; Enhance the support of financial institutions to residents of family housing purchase.The article was written in multiple perspectives to analyse the urban family’s housing affordability, such as:micro and macro, supply and demand, etc. It is helpful for the comprehensive understanding of the present stage of residents’ housing situation. It also provided some references for government to draw up the policy of multi-level housing system and even improve housing policy (especially policy of indemnificatory apartment); for real estate companies to make investment decision; for urban family to make rational spending decison on housing.