Under Thebackground Of The New Urbanization,REITs Applied To Explore Affordable Housing

In thirty years of reform and opening up,the constraction of China urbanization is the most significant. Urbanization makes a great contribution to China’s economic and social development. However, more and more social problems exposed with the continuous progress of urbanization. Among them, the most prominent problem is the housing problems of low-income families. Therefore, the government vigorously carry out the indemnificatory housing construction to solve the housing problmes of low-income families.With the progress of society, the traditional development model of urbanization can not meet the demand of economic development. So the party and the country put forward the concept of New urbanization. The traditional extensive financing of the indemnificatory housing does not meet the requirements of New urbanization,which’s requirement is economical and intensive, green development. In addition, the former financing problems existing in process of the indemnificatory housing construction. Therefore, it is necessary to explore the new way of financing of the indemnificatory housing.REITs is an important means of real estate securitization. REITs can make the real estate investment which is poor liquidity directly into the capital market securities assets to carry out financial transactions. Compared with the traditional security financing housing, REITs is more liquid. More importantly, REITs is able to absorb the social capital, can ease the pressure of government funds to a large extent.Therefore, the REITs is introduced to China’s affordable housing construction can be very good to solve the financing difficulties in the current.This paper first summarizes our security dilemma of financing housing construction, and then expouds the theory of REITs. The conclusion that REITs is applied to the indemnificatory housing financing advantage through analysis, and learning from the successful operation experience in foreign REITs, obtians the possibility of REITs application in China affprdable housing financing. Finally putforward some suggestions on China establishing affordable housing REITs.