A Study of urban housing affordability in China
Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
This master thesis is devoted to understand urban housing affordability in China. The purpose of this thesis has been to investigate different approaches of studying housing affordability, and the policy and social complications of the measurement of Chinese urban housing affordability. The analysis is performed in three steps. The first part reviews articles and existing studies concerning the definition of housing affordability by Hui, 2001. Two approaches are used, and a new model is built based on the two to definitions of housing affordability. The second part presents data of Chinese housing affordability based on house price to income ratio-HPI ratio for Beijing and Shanghai. The income distribution is considered as the primary factor to use HPI ratio in this section. The third part examines reforms and policies regarding housing affordability, and analyzes the positive and negative roles of government in the homeownership based housing affordability development. The last part adjusts the social complications of housing affordability study, including better home quality and size, high saving rate and imbalance of demand and supply. In this section, Chinese social characteristics are studied with housing affordability. According to my study, housing affordability deteriorated after Chinese housing privatization. Low and middle income groups are suffering the most from it. Economic developed cites are suffering more than other cities. Government policies like social housing are not satisfying the needed groups. Housing provident fund is increasing the inequality among income classes.
Place, publisher, year, edition, pages
2014. , 50 p.
IdentifiersURN: urn:nbn:se:kth:diva-150424OAI: oai:DiVA.org:kth-150424DiVA: diva2:743273
Degree of Master - Economics of Innovation and Growth