The Impact Of Local Government Preference For The Supply Of Affordable Housing

As housing is a basic production and living resource for human survival and development, to make sure that everyone has a comfortable place to live is an important foundation for ruling legitimacy. Comparing to other public service projects, the affordable housing has its own features, such as high investment, low-return or no return in short-term, regional heterogeneity, etc. As a result, current housing supply process is facing many problems, such as not enough quantity, low quality or imperfect distribution system. In order to find out the mechanism of these problems, many researches have been carried out and explanations are given from different aspects:rules system is imperfect; returning cycle is longer than job cycle; local government refuses immigrants. The purpose of this paper is trying to reveal the deep reasons behind.In this paper, based on relative concepts definition, the affordable housing is labeled as a quasi-public good, which mainly supplied by/from local government. To understand the process of public policy formulation and implementation, an important step is to understand the political actors’ preferences. Following this logic route, analytical framework is set up for affordable housing supply problems. Current process is analyzed of affordable housing supply in Nanjing, and the huge impact is revealed of local government preferences on the supply of affordable housing. Meanwhile, a cost- income model is put forward to find the solution of effectively improving affordable housing supply levels. The impact factors are decomposed and analyzed of local government preferences on affordable housing supply. It reveals that to decrease the impact factor of regional GDP or to increase the impact factor of residents’ satisfaction degree on local government performance evaluation, the central government is able to effectively improve the initiative of local government on affordable housing supply and quality. In order to set effective restrictions for local government away from abusing responsibility, enough supervision and punishment should be applied. Finally, a comprehensive solution scheme is provided for the effective supply of affordable housing.