The Effect Of Chinese Urban Housing Price On Household Consumption—

Since the housing reform in 1998, the rapid growth of China’s urban housing price has become a crucial factor of household consumption.This paper mainly study the housing price’s impact on household comsumption from two aspects:First, This paper uses Chinese urban household survey data from 2002 to 2009 and a fixed effect model to to investigate the relationship between the housing price fluctuations and household consumption.On average, the housing price significantly suppressed household consumption, and the heterogeneity of cities exist. Housing price fluctuationt has significantly depressed household non-rent consumption of residents in first and second line cites, but not significantly depressed household non-rent consumption of residents in three and four line cites.Second, This paper uses Chinese urban household survey data from 2002 to2009 to take a sub-studies on household heterogeneity, and the conclusions show that:(1) on average, housing price rising has the largest impact on elderly household consumption;(2) For no housing families, housing price rising won’t change young household and old household’s non-rent consumption;(3) For families who own only one house,housing price rising still won’t change old household’s non-rent consumption;(4) In the analysis of families whether have unmarried children, We found the supressed effect of househould comsumption of families who have unmarried men are larger than families who have unmarried women, but for families whose househead are between 35 to 44 and 45 to 54 household consumption has opposite effect due to the unmarried men factor.Overall, the supressed effect of househould who have sons is larger than househould who have daughters.