A Case Study On Housing Affordability Of Wuhan’s Residents

Housing is one of the most prerequisites of human life and production, and its welfare nature of the state and residents have had personal significance. With Wuhan’s rapid economic evolution and urbanization, the real estate quickly develops, but the high housing prices greatly exceeds the actual purchasing power of residents, more and more families facing housing payment difficulties, so the housing problem comes. In the current market economy, the country established a multi-level housing supply system, the high-income groups achieve their needs by market means, in the low-income housing problem is solved through the purchase of affordable housing. Consumers select the houses can not beyond their capacity. Therefore, it is necessary to assess the residents of housing affordability.The housing affordability is the affordability of housing for a certain price, including the purchase, lease and long-term ability to hold the housing. In this paper, based on relevant information domestic and overseas, choose "Wuhan resident housing affordability" as the object of study, combined with the four factors that affect housing affordability:real estate prices, income, interest rates, policies and systems. Using price income ratio and monthly income ratio to describe the residents’housing affordability, and using the residual income method to estimate how much the current wuhan residents’ ability to pay the biggest housing area; at the same time the paper points out that the ability to pay should be treated dialectically, not only improve the requirements, but also need to improve the quality, the higher affordability of housing is not optimized to suppress the cost of non-housing consumption expenditure, housing purchase and hold not reduce the existing quality of life.This article uses the ARIMA time series model to predict future housing affordability of Wuhan residents, and put forward some measures to improve housing affordability, including:To maintain sustained growth in disposable household income, narrowing the income gap; avoid radical conspicuous consumption and establish a rational housing consumption concept, vigorously develop the secondary housing market, housing consumption rung improvement guide; ways to improve government regulation, increase government regulation of the housing market, to draw the boundaries between government and market behavior, to avoid government rent-seeking; promotion of housing market information disclosure, to crack down on hoarding behavior of housing, improve housing finance security system.