Impact Of Housing Price Fluctuation On Consumption Of Urban Residents In Hefei

People's income and consumption level continue to rise with the continuous economic growth.Housing has become one of the important survival needs of people.Exports,investment and consumption are the three carriages driving China's economic development.The rapid development of the national economy has promoted the prosperity of the real estate industry.The real estate industry has become more and more important in the national economy.The real estate market is also growing and the proportion of real estate wealth in the household wealth is also getting increasingly higher.In our country,residents have higher savings rate and lower consumption rate,and residents also face the problem in buying a house.It is of great importance to research the relationship between housing price fluctuation and household consumption.In related research,some scholars have studied the impact of housing prices on household consumption from a nationwide perspective;some have chosen typical cities to study;others have selected specific regions to carry out research work.However,there is little research on the impact of housing price fluctuations on the urban residents' consumption in second-tier cities.As the capital of Anhui Province,Hefei City is a strategic two-node city of Belt and One Road Initiative,and the Yangtze River Economic Belt.Being an innovative city with strong influence at home and abroad,it is a representative of second-tier cities in China.In recent years,housing prices in Hefei increase faster which is worth to study and has certain guiding significance for second-tier cities.The main content of this paper includes six chapters.The first chapter is the introduction part.Through topic selection background and raising questions,it gives the introduction of both the purpose and the significance,the definition and content of the concept,the research methods and research ideas,the possible innovation and the deficiency.The second chapter mainly expounds the theoretical basis and literature review.The third chapter focuses on the transmission mechanism analysis of the impact of housing price fluctuations on household consumption.The fourth chapter mainly analyzes the real estate price fluctuation in Hefei and the current situation of urban residents' consumption.As for the fifth chapter,it focuses on the empirical analysis of the overall impact of housing price fluctuations on urban residents'consumption in Hefei,mainly selecting the data of Hefei from 2000 to 2016.The sixth chapter puts forward the research conclusion and the policy enlightenment.This paper first discusses the classical consumption theory,the wealth effect,the influence of the fluctuation of housing prices on the transmission of residents'consumption,and holds the idea that the fluctuation of housing prices can produce the wealth effect and the crowding-out effect.Then,according to the actual development of real estate and the actual consumption of residents,the correlation between them as well as the fluctuation of housing prices in Hefei and current situation of urban residents' consumption are analyzed.After that,a multiple linear regression model and empirical analysis are conducted,and a conclusion that Hefei housing prices increasing will squeeze out consumer spending is made.In the end,many suggestions are put forward,such as raising resident's income level,developing income distribution system,transforming traditional consumption concept,establishing reasonable consumption idea,developing housing secondary market,improving housing financial market,stabilizing real estate price and supervising real estate market,and adjusting the housing supply structure as well as controlling the speculative housing demand.