The Housing Wealth Effect Of China

At the18th CPC National Congress, the government proposed building amoderately prosperous society in2020, and vigorously promote urbanization, while80people on behalf of reform and opening up has entered the ranks of real estatebuyers, in this context, the study of China’s real estate price changes for differentregions, different types of housing and consumer impact of different income levels ofresidents has important significance.In this paper, based on LC-PIH model we build a theoretical model of this paper.Through the micro household survey data, empirical studies of the wealth effect of thereal estate market. The main content of the article include the following aspects:First, the literature on the real estate market through the wealth effect ofdomestic sort, summarize different scholars wealth for the real estate market research,the study of the real estate market wealth effect that exist in the current issue ofCommentary. Secondly, the basic theory on the basis of the wealth effect, build atheoretical model, and the model of China’s real estate market through the existenceof the wealth effect of an empirical test. Finally, on the basis of empirical research,this article in accordance with the characteristics of the database for different housingtypes, different regions and different income household real estate wealth effect levelswere studied, the following conclusions:(1) the existence of the whole, China’s realestate market a strong wealth effect, but over time, the real estate market in the wealtheffect becomes small.(2) for different types of families, the performance of the realestate wealth effect is different, specific realization is: those who own housing wealtheffect is greater than the wealth effect renters; economically developed regions have astronger wealth effect; wealth of high-income families effect is more pronounced.