IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i21p8771-d432902.html
   My bibliography  Save this article

Combined Rental and Transportation Affordability under China’s Public Rental Housing System—A Case Study of Nanjing

Author

Listed:
  • Haijin Wu

    (School of Geographic and Oceanographic Sciences, Nanjing University, Nanjing 210018, China
    Nanjing Academy of Social Sciences, Nanjing 210018, China)

  • Guofang Zhai

    (School of Architecture and Planning, Nanjing University, Nanjing 210018, China)

  • Wei Chen

    (School of Geographic and Biologic Information, Nanjing University of Posts and Telecommunications, Nanjing 210023, China)

Abstract

As a core element of China’s housing security system, public rental housing (PRH) has gradually become an effective means of providing low- and moderately low-income groups with viable housing options and is regarded as the embodiment of housing justice values under the Chinese socialist system. Affordability for the groups covered by this system is crucial to its sustainable positive role. By modifying the housing and transportation affordability index ( H&TAI ) equation proposed by the Center for Neighborhood Technology (CNT) and Center for Transit-Oriented Development (CTOD), United States, this paper establishes a novel rental and transportation affordability index ( R&TAI ), introduces transportation-time-cost and comprehensive-transportation-cost concepts and obtains transportation-time-cost data through accessibility analysis, which are incorporated into calculations of comprehensive transportation cost with the ArcGIS spatial analysis software. Based on the ratio of the combined cost of rental housing and transportation to household residual income (RI), this paper studies and measures the combined affordability for low- and moderately low-income residents under the PRH system. The burden of high combined rental and transportation costs not only greatly reduces residents’ ability to cope but also limits sustainable PRH system development, exacerbating the gaps between social strata. This study and its conclusions provide a reference for the Chinese government for reforming the macro-housing system and practically regulating the housing market while providing residents with options to reduce their comprehensive burden and improve their quality of life.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:8771-:d:432902
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/21/8771/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/21/8771/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xiaolong Gan & Jian Zuo & Tao Wen & Yujuan She, 2019. "Exploring the Adequacy of Massive Constructed Public Housing in China," Sustainability, MDPI, vol. 11(7), pages 1-17, April.
    2. Shanggang Yin & Zhifei Ma & Weixuan Song & Chunhui Liu, 2019. "Spatial Justice of a Chinese Metropolis: A Perspective on Housing Price-to-Income Ratios in Nanjing, China," Sustainability, MDPI, vol. 11(6), pages 1-15, March.
    3. Chunhui Liu & Weixuan Song, 2019. "Perspectives of Socio-Spatial Differentiation from Soaring Housing Prices: A Case Study in Nanjing, China," Sustainability, MDPI, vol. 11(9), pages 1-16, May.
    4. 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.
    5. Saberi, Meead & Wu, Hongzhi & Amoh-Gyimah, Richard & Smith, Jonathan & Arunachalam, Dharmalingam, 2017. "Measuring housing and transportation affordability: A case study of Melbourne, Australia," Journal of Transport Geography, Elsevier, vol. 65(C), pages 134-146.
    6. Mark Robinson & Grant M. Scobie & Brian Hallinan, 2006. "Affordability of Housing: Concepts, Measurement and Evidence," Treasury Working Paper Series 06/03, New Zealand Treasury.
    7. Alex Schwartz, 2017. "Future Prospects for Public Housing in the United States: Lessons From the Rental Assistance Demonstration Program," Housing Policy Debate, Taylor & Francis Journals, vol. 27(5), pages 789-806, September.
    8. Amy S. Bogdon & Ayse Can, 1997. "Indicators of Local Housing Affordability: Comparative and Spatial Approaches," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 25(1), pages 43-80, March.
    9. Katrin B. Anacker, 2019. "Introduction: housing affordability and affordable housing," European Journal of Housing Policy, Taylor and Francis Journals, vol. 19(1), pages 1-16, January.
    10. Judith Yates, 2008. "Australia's Housing Affordability Crisis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 41(2), pages 200-214, June.
    11. Dan Luo & Harry van der Heijden & Peter J. Boelhouwer, 2020. "Policy Design and Implementation of a New Public Rental Housing Management Scheme in China: A Step Forward or an Uncertain Fate?," Sustainability, MDPI, vol. 12(15), pages 1-25, July.
    12. Katrin B. Anacker, 2019. "Introduction: housing affordability and affordable housing," International Journal of Housing Policy, Taylor & Francis Journals, vol. 19(1), pages 1-16, January.
    13. Mulliner, Emma & Smallbone, Kieran & Maliene, Vida, 2013. "An assessment of sustainable housing affordability using a multiple criteria decision making method," Omega, Elsevier, vol. 41(2), pages 270-279.
    14. Ernest Uwayezu & Walter T. de Vries, 2020. "Access to Affordable Houses for the Low-Income Urban Dwellers in Kigali: Analysis Based on Sale Prices," Land, MDPI, vol. 9(3), pages 1-32, March.
    15. William P. Anderson & Pavlos S. Kanaroglou & Eric J. Miller, 1996. "Urban Form, Energy and the Environment: A Review of Issues, Evidence and Policy," Urban Studies, Urban Studies Journal Limited, vol. 33(1), pages 7-35, February.
    16. Isalou, Ali A. & Litman, Todd & Shahmoradi, Behzad, 2014. "Testing the housing and transportation affordability index in a developing world context: A sustainability comparison of central and suburban districts in Qom, Iran," Transport Policy, Elsevier, vol. 33(C), pages 33-39.
    17. Gan, Quan & Hill, Robert J., 2009. "Measuring housing affordability: Looking beyond the median," Journal of Housing Economics, Elsevier, vol. 18(2), pages 115-125, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saberi, Meead & Wu, Hongzhi & Amoh-Gyimah, Richard & Smith, Jonathan & Arunachalam, Dharmalingam, 2017. "Measuring housing and transportation affordability: A case study of Melbourne, Australia," Journal of Transport Geography, Elsevier, vol. 65(C), pages 134-146.
    2. Tiznado-Aitken, Ignacio & Lucas, Karen & Muñoz, Juan Carlos & Hurtubia, Ricardo, 2022. "Freedom of choice? Social and spatial disparities on combined housing and transport affordability," Transport Policy, Elsevier, vol. 122(C), pages 39-53.
    3. Emma Mulliner & Vida Maliene, 2014. "An Analysis of Professional Perceptions of Criteria Contributing to Sustainable Housing Affordability," Sustainability, MDPI, vol. 7(1), pages 1-23, December.
    4. Dewita, Yulia & Yen, Barbara T.H. & Burke, Matthew, 2018. "The effect of transport cost on housing affordability: Experiences from the Bandung Metropolitan Area, Indonesia," Land Use Policy, Elsevier, vol. 79(C), pages 507-519.
    5. Mulliner, Emma & Malys, Naglis & Maliene, Vida, 2016. "Comparative analysis of MCDM methods for the assessment of sustainable housing affordability," Omega, Elsevier, vol. 59(PB), pages 146-156.
    6. Ben-Shahar, Danny & Gabriel, Stuart & Golan, Roni, 2019. "Housing affordability and inequality:A consumption-adjusted approach," Journal of Housing Economics, Elsevier, vol. 45(C), pages 1-1.
    7. Ikenna Stephen Ezennia & Sebnem Onal Hoskara, 2019. "Exploring the Severity of Factors Influencing Sustainable Affordable Housing Choice: Evidence from Abuja, Nigeria," Sustainability, MDPI, vol. 11(20), pages 1-25, October.
    8. Ikenna Stephen Ezennia & Sebnem Onal Hoskara, 2019. "Methodological weaknesses in the measurement approaches and concept of housing affordability used in housing research: A qualitative study," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-27, August.
    9. Mulliner, Emma & Smallbone, Kieran & Maliene, Vida, 2013. "An assessment of sustainable housing affordability using a multiple criteria decision making method," Omega, Elsevier, vol. 41(2), pages 270-279.
    10. Wei Hu & Shanggang Yin & Haibo Gong, 2022. "Spatial–Temporal Evolution Patterns and Influencing Factors of China’s Urban Housing Price-to-Income Ratio," Land, MDPI, vol. 11(12), pages 1-15, December.
    11. Alberto Montagnoli & Jun Nagaysu, 2013. "An investigation of housing affordability in the UK regions," Working Papers 1316, University of Strathclyde Business School, Department of Economics.
    12. Mengqiu Cao & Robin Hickman, 2018. "Car dependence and housing affordability: An emerging social deprivation issue in London?," Urban Studies, Urban Studies Journal Limited, vol. 55(10), pages 2088-2105, August.
    13. Fawzia FARZANA, 2019. "Adoption of Affordability and Sustainability Issues in Slum Rehabilitation through PPP in Dhaka, Bangladesh," RAIS Journal for Social Sciences, Research Association for Interdisciplinary Studies, vol. 3(2), pages 29-39, November.
    14. Andrea Kunnert, 2016. "Leistbarkeit von Wohnen in Österreich. Operationalisierung und demographische Komponenten," WIFO Studies, WIFO, number 58932, April.
    15. Liming Yao & Michael White & Alla Koblyakova, 2015. "House price appreciation and housing affordability: a study of younger households tenure choice in China," ERES eres2015_44, European Real Estate Society (ERES).
    16. Ryan Greenaway-McGrevy & Gail Pacheco & Kade Sorensen, 2021. "The effect of upzoning on house prices and redevelopment premiums in Auckland, New Zealand," Urban Studies, Urban Studies Journal Limited, vol. 58(5), pages 959-976, April.
    17. Tilak Abeysinghe & Jiaying Gu, 2011. "Lifetime Income and Housing Affordability in Singapore," Urban Studies, Urban Studies Journal Limited, vol. 48(9), pages 1875-1891, July.
    18. Dittmann Iwona, 2018. "Spatial and Temporal Diversification of the Income Affordability of Housing in Poland," Real Estate Management and Valuation, Sciendo, vol. 26(4), pages 54-67, December.
    19. David McCollum & Hebe Nicholson & Paula Duffy, 2021. "A place-based approach to population sustainability: Demographic and economic change at the local level in Fife, Scotland," Local Economy, London South Bank University, vol. 36(6), pages 505-523, September.
    20. Sock-Yong Phang, 2009. "Affordable homeownership policy : implications for housing markets," Microeconomics Working Papers 23052, East Asian Bureau of Economic Research.

    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:gam:jsusta:v:12:y:2020:i:21:p:8771-:d:432902. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.