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Chinese Housing Reform and Social Sustainability: Evidence from Post-Reform Home Ownership

Author

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  • Lishan Xiao

    (Key Lab of Urban Environment and Health, Institute of Urban Environment, CAS, Xiamen 361021, China
    Xiamen Key Lab of Urban Metabolism, Xiamen 361021, China)

  • Quanyi Qiu

    (Key Lab of Urban Environment and Health, Institute of Urban Environment, CAS, Xiamen 361021, China
    Xiamen Key Lab of Urban Metabolism, Xiamen 361021, China)

  • Lijie Gao

    (Key Lab of Urban Environment and Health, Institute of Urban Environment, CAS, Xiamen 361021, China
    Xiamen Key Lab of Urban Metabolism, Xiamen 361021, China)

Abstract

Since 1978, China has undergone an institutional reform, from a welfare-oriented housing allocation system to a market-oriented one. But with high housing prices, affordability is a major obstacle to home ownership for Chinese citizens. Now, the government has started to change the goal of housing policy from present economic benefits to sustainable housing, so future generations will have a decent place to live. Housing is an important indicator for social stratification, and home ownership, which is an important component of social sustainability in the Chinese context, is influenced by multiple factors that vary across countries. Although China has a long tradition of home ownership, there is a lack of comprehensive research on post-reform housing inequality. By undertaking a large-scale field study in the city of Xiamen, our research explored to what extent home ownership varies across socio-economic classes, and improves understanding of the reasons behind home ownership inequality. It was discovered that people have a variety of resources from which housing can be obtained, and that commercial housing served as the primary housing source, although, due to path dependence, public housing still comprises an important source of housing, as well as self-built houses. A structural equation model (SEM) was used to further explore the driving forces of home ownership inequality. The model indicated that hukou (household registration) status has the strongest effect on home ownership, followed by education, with family income and occupation as less important factors. Along with income and education, home ownership has a direct effect on people’s perception of their own socio-economic status (SES). A probability model of home ownership was developed, based on logistic regression. Local families with higher levels of income and education with at least one member working in a publicly owned organization had a higher probability of home ownership. Lastly, since 1999, housing reform in Xiamen has tended to increase social stratification, with negative economic and social consequences. Therefore, policies should pay more attention to the welfare of renters and integrating the migration process into urban planning.

Suggested Citation

  • Lishan Xiao & Quanyi Qiu & Lijie Gao, 2016. "Chinese Housing Reform and Social Sustainability: Evidence from Post-Reform Home Ownership," Sustainability, MDPI, vol. 8(10), pages 1-14, October.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:10:p:1053-:d:80967
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    3. Tayefi Nasrabadi, Mahla & Hataminejad, Hossein, 2021. "Towards residential buildings sustainability in a religious-tourism metropolis," Land Use Policy, Elsevier, vol. 103(C).
    4. Faan Chen & Fang Tian & Chris P. Nielsen & Jiaorong Wu & Xiaohong Chen, 2023. "Physical Environment, Socio-Psychological Health, and Residential Satisfaction: A Link across Housing Types in the Unique Chinese Context," Sustainability, MDPI, vol. 15(23), pages 1-14, November.
    5. Xiaomei Yan & Shenghui Cui & Lilai Xu & Jianyi Lin & Ghaffar Ali, 2018. "Carbon Footprints of Urban Residential Buildings: A Household Survey-Based Approach," Sustainability, MDPI, vol. 10(4), pages 1-14, April.
    6. Shengqin Zheng & Ye Cheng & Yingjie Ju, 2019. "Understanding the Intention and Behavior of Renting Houses among the Young Generation: Evidence from Jinan, China," Sustainability, MDPI, vol. 11(6), pages 1-18, March.
    7. Duo Yin & Junxi Qian & Hong Zhu, 2017. "Living in the “Ghost City”: Media Discourses and the Negotiation of Home in Ordos, Inner Mongolia, China," Sustainability, MDPI, vol. 9(11), pages 1-14, November.
    8. Xiaoping Zhou & Tong Lei & Yuyao Wang & Tianzheng Zhang & Yingjie Zhang & Yan Song & Yingxiang Zeng, 2022. "The spillover effect of senior neighbors on housing prices: Evidence from Beijing, China," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1783-1812, December.
    9. Sheng-Hau Lin & Chia-Tsong Chen, 2020. "Pricing Rent for Social Housing Under Uncertainty," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(4), pages 1-4.
    10. Haijin Wu & Guofang Zhai & Wei Chen, 2020. "Combined Rental and Transportation Affordability under China’s Public Rental Housing System—A Case Study of Nanjing," Sustainability, MDPI, vol. 12(21), pages 1-18, October.

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