IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v157y2025ics0264837725002169.html
   My bibliography  Save this article

Does city-county consolidation lead to regional integration of the housing market? Evidence from China

Author

Listed:
  • Cui, Liyuan
  • Hou, Yujuan
  • Yu, Huayi

Abstract

City-county consolidation is a common approach in metropolitan reorganization. This study examines its impact on the regional integration of the housing market in China through theoretical analysis and empirical evidence. Using a general equilibrium framework, we identify key mechanisms—economic and demographic agglomeration, and land supply—through which consolidation affects the housing market. Empirical analysis of city and district/county level data reveals that: (i) Consolidation increases land supply while having minimal impact on wages and population, resulting in a 4.9 % decrease in housing prices in consolidated cities. (ii) Housing prices increase by 3.1 % in previous county jurisdictions but decrease by 8.9 % in previous city jurisdictions. (iii) The negative effect is more pronounced in both prefecture-level and small cities. (iv) Economic and demographic agglomeration alongside land supply changes is the mechanism underlying these housing price dynamics. Our findings offer implications for administrative division adjustments and housing market stabilization.

Suggested Citation

  • Cui, Liyuan & Hou, Yujuan & Yu, Huayi, 2025. "Does city-county consolidation lead to regional integration of the housing market? Evidence from China," Land Use Policy, Elsevier, vol. 157(C).
  • Handle: RePEc:eee:lauspo:v:157:y:2025:i:c:s0264837725002169
    DOI: 10.1016/j.landusepol.2025.107682
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837725002169
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.landusepol.2025.107682?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:157:y:2025:i:c:s0264837725002169. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.