Research On The Wealth Effects Of Residential Housing Assets

At present,Chinaese economy has entered a new level.The growth of GDP is not only mainly driven by investment but all of consumption,investment and export.However,China is facing the problem of weak growth in consumption,how to improve consumption rate is an important economic proposition for China in the next few years.Housing assets are the most important part of residents’wealth.How to make the housing assets to promote consumption rate is of great significance.The wealth effects of housing assets is studied from two dimensions in this paper.Firstly,the domestic dimension,having a deep understanding of the wealth effects of housing assets from the differences both in regions and consumption structure.Secondly,the international dimension,compare the wealth effects of housing assets between China and the United States.The two country have different national conditions,culture system,finding the difference of the wealth effects of housing assets between the two country and the factors that cause the differences.It find that wealth effects of housing assets do not exist in China,and through comparison between regions,It find that the eastern regions’ high housing prices lead to negative wealth effect of housing assets,the west regions have positive wealth effects of housing assets.The wealth effects of housing assets mainly show in the food,clothing and other basic consumer spending items.The United States has a positive wealth effects of housing assets,and the northern regions’ wealth effects of housing assets are more obvious.The wealth effects of housing assets in the United States are mainly reflected in the consumption of non durable goods and services.The differences between Chinese and American wealth effects of housing assets are mainly due to the level and stability of housing prices,external liquidity(development of the real estate market and the housing finance market),internal liquidity constraints(savings),the social security system and other factors.Chinese government should make efforts in these areas to make Chinese wealth effects of housing assets do well.