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Housing Consumption in Urban China

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  • Lim, Gill-Chin
  • Lee, Man-Hyung

Abstract

In this article we examine the effect of social, political, and economic factors on consumption of housing in China. First, we present income elasticities using time-series and cross-sectional analyses. We then compare the results for China with income elasticities for other countries as reported in the literature. Our elasticities range between 0.317 and 1.48--quite similar to the earlier studies by Houthakker in 1957 and Chow in 1985. Our estimates are also comparable with results from other countries. Based on our analysis, we found that rent reform alone cannot successfully improve the Chinese housing situation. Copyright 1993 by Kluwer Academic Publishers

Suggested Citation

  • Lim, Gill-Chin & Lee, Man-Hyung, 1993. "Housing Consumption in Urban China," The Journal of Real Estate Finance and Economics, Springer, vol. 6(1), pages 89-102, January.
    • Handle: RePEc:kap:jrefec:v:6:y:1993:i:1:p:89-102
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    Cited by:

    1. Yuting Cao & Ran Liu & Wei Qi & Jin Wen, 2020. "Spatial Heterogeneity of Housing Space Consumption in Urban China: Locals vs. Inter-and Intra-Provincial Migrants," Sustainability, MDPI, vol. 12(12), pages 1-26, June.
    2. Fu, Yuming & Tse, David K. & Zhou, Nan, 2000. "Housing Choice Behavior of Urban Workers in China's Transition to a Housing Market," Journal of Urban Economics, Elsevier, vol. 47(1), pages 61-87, January.
    3. Xin Gu & Zhang-Yue Zhou & Yan-Rui Wu, 2019. "Understanding China’S Urban Consumption Patterns: New Estimates And Implications," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 961-981, September.
    4. Daichun Yi & Xiaoying Deng & Gang-Zhi Fan & Seow Eng Ong, 2018. "House Price and co-Residence with Older Parents: Evidence from China," The Journal of Real Estate Finance and Economics, Springer, vol. 57(3), pages 502-533, October.
    5. Zax, Jeffrey S., 1997. "Latent Demand for Urban Housing in the People's Republic of China," Journal of Urban Economics, Elsevier, vol. 42(3), pages 377-401, November.
    6. Fulong Wu, 1996. "Changes in the Structure of Public Housing Provision in Urban China," Urban Studies, Urban Studies Journal Limited, vol. 33(9), pages 1601-1627, November.
    7. Iris Claus & Les Oxley & Jie Chen & Xuehui Han, 2014. "The Evolution Of The Housing Market And Its Socioeconomic Impacts In The Post-Reform People'S Republic Of China: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 652-670, September.

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