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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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    References listed on IDEAS

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    3. Qian Zhang & Joris Hoekstra, 2020. "Policies towards Migrants in the Yangtze River Delta Urban Region, China: Does Local Hukou Still Matter after the Hukou Reform?," Sustainability, MDPI, vol. 12(24), pages 1-24, December.
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    7. 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.
    8. Tayefi Nasrabadi, Mahla & Hataminejad, Hossein, 2021. "Towards residential buildings sustainability in a religious-tourism metropolis," Land Use Policy, Elsevier, vol. 103(C).
    9. 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.
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