The Impact Of Real Estate Price On The Consumption Of Urban Residents In China

In recent years, China’s consumption shortage becomes more and more prominent,has become a constraining factor in sustainable economic growth in china. On the transformation of China’s economic development mode, to stimulate domestic consumption, expanding domestic demand has become a major driving force for sustained and stable economic growth. Real estate has the dual attributes of consumer goods and investment goods, a large proportion of the residents of family assets, real estate price changes on consumption has attracted more and more attention.The academic circles generally use the wealth effect theory analysis of the impact of real estate prices on consumption. The research results are not the same. With the increase of the desire to purchase real estate holdings and holdings of the residents in our country,the research on the wealth effect of the real estate industry has great practical significance in the current stage. Only a clear relationship between China’s real estate prices and consumption, can be targeted to the formulation of relevant policies, not only to maintain a reasonable price growth in China, but also have to stimulate consumption.This paper summarizes the research results of scholars at home and abroad, combined with China’s specific national conditions of China’s real estate wealth effect is studied. This paper is based on the traditional theory of the consumption function and the wealth effect of the real estate industry theory, selection of urban residents per capita disposable income of urban residents per capita consumption expenditure, the average price of commercial housing sales, the Shanghai Composite Index closing price, interest rate and other variables to establish econometric VAR model, mining test, unit root cointegration test, impulse response function and variance the decomposition method to investigate the influence of different variables on household consumption in china. Through the analysis of the empirical results we can draw the conclusion: China’s real estate prices will have a negative effect on domestic consumption, and the negative effect is not significant. In order to play the wealth effect of the real estate market in China, to stimulate domestic consumption growth, China should strive to improve the income level of residents,reasonable regulation of the real estate, the housing price control policy, the difference of the perfection of the social security system, improve the housing finance market, and guide rational consumption concept of residents in china.