The Population Factor Behind The Rising House Price Of Chinese Major City

The situation of real estate market have an essential effection tothe development of our country’s economy and quality of residents’life. Recently, the real estate market has already been one of the mostimportant part of Chinese economic system. However, the raisinghouse price is a heavy burden to individuals, and the negative effecthas penetrated to people’s daily life. We must know clear about thevarious factors and the specific mechanism that affect house price, ifwe want to control the house price and guarantee real estate markethealthy development.Nevertheless, the factor that affect house price is not justeconomic level, the further reason of population can not be ignored.House is a significant property for individual, many people even putthe house to a main position of their life,as a consequence,population is a vital factor to explain the house price rising.This paper analysis this issue from the population scale and the gender structure two side, mainly concentrate on its conduction effect and the theoretical mechanism. In the paper, I choose the provincial panel data from1999~2013, and use differential GMM model and system GMM model to do empirical analysis. In ter ms of the selection of population index, I choose the young dependency ratio to represent the how the X generation of “Baby Boom” influence the house price, while use the birth rate to represent the effect that the Y generation of “Baby Boom” done. Moreover,I use sex ratio.The evidence shows that the population is one of the mostimportant factor that affect the house price, birth rate and houseprice significant positive correlation, which illustrate that the “BabyBoom” outbroke in the80s result in the massive growth of the Xgeneration,they constitute the rigid demand of the real estate market.Meanwhile, as the X generation grown up，the pressure of birthingbaby decreased for the Y generation, several wealthy family begin tohave the demand of improving house condition, the negativecorrelation between young dependency ratio and house price confirmthis theory as well. Besids, Long existence of patriarchal ideologyexacerbate the marriage squeeze, which made the marriage house toa essential thing. This situation forced the marriageable populationhave a rigid demand for house. Limited by incomplete data, I usesimple sex ratio of each province to instead the sex ratio in marriagematching, which made the results are not satisfactory.