A Study On The Influence Of Residential Price On Consumption Expenditure Of Chinese Urban Residents And Its Difference

Since the reform of housing market in 1998,the housing price in cities has been rising all the way along with the vigorous development of China's economy,and real estate has gradually become an important part of the residents' wealth.At the same time,per capita consumption of Chinese residents has also increased,but the consumption rate has decreased year by year.The phenomenon aroused widespread academic debate on whether housing prices are "promoting" or "restraining" urban residents' consumption expenditure.This paper argues that the housing market in China has its own characteristics compared with foreign countries,which may lead to different effects of housing price on consumption expenditure of urban residents.And then,there are differences in the impact of residential prices on consumer spending in families with different microcosmic characteristics(such as type of residence,age,region,etc.).Therefore,we should study the result of housing prices affect the consumption expenditure of urban residents in micro-level.At present,domestic research has focused on the impact of housing prices on the overall consumption of urban residents in China,few studies on the subdivision of groups with different characteristics on the base of micro data.Based on the data of CHFS micro-household survey,the LC-PIH model is used to analyze the overall effect of the residential price on the consumption expenditure of urban residents in China,and analyzes the differences in terms of residence type,region,age level,income,wealth attributes.The purpose is:first,to understand the impact of housing prices on consumption expenditure of urban residents and its differences;Second,to put forward some suggestions to promote the reasonable consumption of urban residents based on the empirical analysis.The results show that:(1)housing prices will promote the overall consumption expenditure of urban residents in China.(2)housing prices affect consumption in the five areas have obvious differences:?Compared with the self-occupied housing group,the residential price of the rental residential groups has a positive effect on consumption,while the free-living-group shows a restraining effect;?In terms of geographical differences,the degree of influence is greatest in the eastern and western regions,and the northeastern and central regions are smaller;?The consumption expenditure of urban households decreased gradually year by year since thirty-years-old,the consumer spending of the old group(aged between 50 and 60)is less than young group(under the age of 30)and the eldest group(over the age of 60)is the least of all age groups;?The higher the income or the number of housing units,the higher positive effect of residential prices on consumer spending.According to the empirical results,this paper argues that China's urban housing market has obvious wealth effect,which shows that the development of real estate industry,a pillar industry of the national economy,could promote urban residents consumption.To raise the level of consumption expenditure of urban residents rationally,we can proceed from the following aspects:First,to promote the development of the housing rental market,in particular,to allow free-living-groups to participate in the operation of the market,so the proportion of owner-occupied housing and rental housing groups will be increased and the proportion of free living groups will be reduced.Second,to control the eastern region of housing price,the appropriate increase in the western region of housing prices,to maintain or inhibit the northeast and central areas of housing prices.Third,improve homeownership rate.The more houses people have,the more consumption they will have.So,raising homeownership rate is an effective way to raise the consumption level reasonably.Currently,improve homeownership rates are practical measure under the background of "reduce real estate inventory policy".Fourth,raise the income level of urban residents.Income is one of the important sources of consumption,and the empirical results show that the wealth effect of high-income groups is stronger,so the increase of residents' income can help to stimulate the consumption expenditure of urban residents.