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Does housing unaffordability crowd out elites in Chinese superstar cities?

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  • Chen, Jie
  • Hu, Mingzhi
  • Lin, Zhenguo

Abstract

With prices soaring in Chinese superstar cities (i.e., Beijing, Shanghai, Guangzhou and Shenzhen), housing is becoming increasingly unaffordable. This paper investigates whether housing unaffordability crowds out elites in Chinese superstar cities. Using both micro- and macro-level data from China's Urban Household Survey and China Statistical Yearbook for Regional Economy, we find that, in general, elites still prefer superstar cities. However, there is evidence that the attractiveness of superstar cities has declined over time. In addition, we find that the next-tier cities (i.e., alternative cities) become increasingly attractive to elites. These findings provide strong evidence of the crowding out effect on elites in Chinese superstar cities due to their housing unaffordability.

Suggested Citation

  • Chen, Jie & Hu, Mingzhi & Lin, Zhenguo, 2019. "Does housing unaffordability crowd out elites in Chinese superstar cities?," Journal of Housing Economics, Elsevier, vol. 45(C), pages 1-1.
    • Handle: RePEc:eee:jhouse:v:45:y:2019:i:c:3
    DOI: 10.1016/j.jhe.2018.03.003
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    Cited by:

    1. Mingzhi Hu & Zhenguo Lin & Yingchun Liu, 2024. "Housing Disparity between Homeowners and Renters: Evidence from China," The Journal of Real Estate Finance and Economics, Springer, vol. 68(1), pages 28-51, January.
    2. Jia Pengfei & Lim King Yoong, 2021. "Tax Policy and Toxic Housing Bubbles in China," The B.E. Journal of Macroeconomics, De Gruyter, vol. 21(1), pages 151-183, January.
    3. Yang, Zhenbing & Chen, Zhuo & Shao, Shuai & Yang, Lili, 2022. "Can housing price regulation improve R&D performance in universities? Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    4. Yanjiao Song & Chuanyong Zhang, 2020. "City size and housing purchase intention: Evidence from rural–urban migrants in China," Urban Studies, Urban Studies Journal Limited, vol. 57(9), pages 1866-1886, July.
    5. Sanqin Mao & Jie Chen, 2021. "Residential Mobility and Post-Move Community Satisfaction: Empirical Evidence from Guangzhou, China," Land, MDPI, vol. 10(7), pages 1-14, July.
    6. Hu, Mingzhi & Su, Yinxin & Ye, Wenping, 2019. "Promoting or inhibiting: The role of housing price in entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 148(C).

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    More about this item

    Keywords

    Housing price; Crowd out; Elites; Superstar cities; Alternative cities;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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