Research On The Price Of Affordable Housing In Yuncheng City, Shanxi Province

The new urbanization has brought a new opportunity for the real estate industry,and it also brings a new topic. Residential is a social problem, but also an economicproblem. Affordable housing is an appropriate policy choice to the actual situation ofChina. In1998, the State Council "Notice on Further Deepening the Reform of theUrban Housing System and Speed up Housing Construction" has formed the affordablehousing based housing supply system. The implementation of affordable housing policyhas resulted in a better social effects: improving the urban housing supply structure,expanding domestic demand, solving the housing difficulties of low-income families,and also improving living standards.In the construction process of affordable housing, the general cost of the land,facilities fees and taxes have been relief, so the price is strengths for the system ofaffordable housing, which can ensure the healthy development of affordable housing. Inthe price measure of affordable housing, the most critical measure is the level oflow-middle income and the ability of the low-income home buyers. The reasonablepricing directly reflects the acceptable extent of low-and middle-income groups.The paper takes Yuncheng City, Shanxi Province as a case, uses the basicprinciples of Western economics and analytical framework, and has an in-depth researchon the price formulation of affordable housing. This paper analyzed the determinants ofprice formation of the affordable housing, and measured the levels oflow-middle-income and the housing affordability. In the paper, the main factors whichaffect the demand and supply of affordable housing have been explored. The writerfinds some affordable housing market problems, analyzes the main reasons in-depth,and put forward useful measures and suggestions.Through the supply,marketing and price analysis of affordable housing inYuncheng, we found that the overall supply of affordable housing in Yuncheng isinadequate, county and city supply is very not balanced; in terms of sales, affordablehousing is affected relatively large by the macroeconomic environment and governmentpolicies. Ordinary commercial housing prices rose rapidly, which results in great needof affordable housing for low-income families; In terms of price, affordable housingprices rise rapidly and increase largely along with economic development. By estimates,found that overall per capita disposable income growth is rapid, but low-income household disposable income growth is relatively slow. The prices of affordable housingare increasing, resulting in a reasonable range of price earnings ratio is increased, whichmeans that the affordable housing prices low-income families can afford are improving,but for low-income families and difficulties families, the pressure is still large. Inaddition, macro-control efforts of affordable housing prices also need to be furtherimproved inYuncheng.With the gradual acceleration of urbanization process in China, the governmentshould give full play to the role of regulation and control, prompt correctedmacroeconomic policies about housing market, and adjust the tax and financial policiestimely in accordance with supply and demand. At the same time, the government shouldimprove supporting mechanisms further, promote healthy development of affordablehousing in China, and guarantee the people to live and work in peace and contentment.