The Research On The Way Of Subsidies About Low-rent Housing System In Our Country

The housing act as one of the basic material which is essential to human survivalhas driven people to purse for a long time. The large income gap and the incomeinequality has brought out a big gap of living condition，so the government urgentlyneeds to take measures to protect people’s right of residence. The low-rent housingsystem is an important part of housing security system, it is a relief system to solvethe housing problem of houseless families among lowest income residents. CashSubsidy, Production Subsidy and Rent Relief are three main subsidy ways of low-renthousing system. Comprehensive understanding of each kind of subsidies and how tochoose appropriate subsidies are crucial to carry out the low-rent housing system.This paper elaborates three subsidies’ current situation, points out mainproblems existing in their operation, then discusses and analyzes their advantages anddisadvantages of three main subsidies in detail and uses the utility theory to analysisthe improvement status of the effectiveness of subsidies on beneficiaries, whicheventually finds that Cash Subsidy is superior to others. It not only has the absoluteadvantage but also has the most obvious utility on beneficiaries. Because of it, thispaper puts forward that Cash Subsidy should be the main way of subsidies. In addition,this paper studies the way of subsidies that the government should choose under fourhousing situation and takes related data from31provinces, autonomous regions andmunicipalities for comprehensive analysis which finds that Cash Subsidy can bewidely used in most place of China, which further proves that Cash Subsidy should bethe main way of subsidies. At the same time, considering the Cash Subsidy standardas the key factor of Cash Subsidy lacks the scientific nature, the paper makes use ofeconometric tools to analysis data from30large and medium-sized cities intensivelyto build a regression model which proves that fiscal revenue, housing price andaverage living floor area per capital are vital to the Cash Subsidy standard. And themodel application result indicates that the model has a very good explanation to CashSubsidy standard that provides an important method for the government to set up andcontrol the standard of Cash Subsidy. At last, in order to promote the way of subsidiesabout low-rent housing continued implementation and ensure its smooth operation,this paper provides some suggestions. Make use of the way of subsidies aboutlow-rent housing system in a reasonable collocation way, improve Cash Subsidy scientifically, improve the relevant supporting measures.