Research On The Influence Of Real Estate Wealth On The Consumption Of Urban Resident

Since China's housing market reform,housing prices have risen rapidly,the real estate market has developed rapidly,and the privatization rate of real estate has reached new heights.Housing assets have become the most important component of China's household assets.In this context,it is more practical to explore the impact of price volatility with real estate assets as the core on household consumption.Based on the modern consumption theory,this paper considers China's macroeconomic development factors and micro household consumption behaviors separately,and discusses the impact of real estate asset changes caused by housing price changes on urban residents'consumption.This paper first analyzes the basic situation of China's housing prices and real estate market,and sorts out domestic and foreign research literatures.Then,based on the life cycle hypothesis and the persistent income theory,we add models of explanatory variables such as interest rates,urbanization rates,and dependency ratios,and use inter-provincial macro data research.Whether the housing price rise has a wealth effect;secondly,the East Midwest and high school low housing prices are used as the classification criteria to further analyze the difference in the impact of housing price increase on consumption;then,based on the micro data of CHFS(China Household Financial Survey),the asset effect of real estate is tested first.And the wealth effect,and then discuss the heterogeneity of asset effects from the two aspects of different incomes and whether there have been demolition,and analyze the heterogeneity of wealth effects from three aspects:age,property rights and number of different properties.Finally,based on the previous research,draw conclusions and make recommendations.Main conclusions:(1)The impact of rising house prices on consumption during this period of 1998-2003 is not significant,and the period of 2004-2017,after the innovative intervention rate,urbanization rate,child rearing ratio and other explanatory variables The rise in house prices also has a significant positive effect on household consumption,that is,there is a wealth effect.As housing wealth increases,mortgage effects appear,and preventive savings decrease,so household consumption increases.The increase in urbanization rate has led to an increase in the supply of factors of production,and the overall demand for health care and transportation has increased,which has also significantly boosted consumption.(2)Differences in inter-provincial data have found that as long as house prices are within a certain range,the rise in house prices shows a wealth effect.And housing prices rose to a higher level,mainly for consumption inhibition.(3)Using CHFS family data research,it is found that the real estate asset effect is significant.Compared with the limited upside of high-income households,the lower income and higher-income households have greater room for growth and the asset effect is stronger.Demolition households can realize rapid appreciation of household assets at a small cost,so the asset effect is greater than that of non-demolition households.(4)Judging from the test results of the microdata weight effect,the rise in house prices has a small effect on the basic consumption of residents,which is the same as the macro data test results.However,unlike the macro test results,there is no wealth effect on total consumption,mainly due to the study of different time nodes.The rise in housing prices can reduce the precautionary savings of young and middle-aged families,and the wealth effect is significant;older families have a bequestual motive without a wealth effect.For households with partial/all property rights,the wealth effect can be realized through sale and mortgage,while small property houses are not protected by law,and the impact of rising house prices on their consumption is not significant.For a family of households,some families have improved housing demand,and the rise in housing prices does not significantly affect their consumption;for those who have two or more suites,they can realize the proceeds through sales and rental,and the wealth effect is significant.