Have housing prices contributed to regional imbalances in urban–rural income gap in China?

Yin, Xiao-Cui; Su, Chi‐Wei

doi:10.1007/s10901-022-09945-1

Cited by 6 publications

(4 citation statements)

References 49 publications

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“…For example, Dieppe et al [ 15 ] found that when house prices rise by 1.5 percentage points, GDP rises by 0.4 percentage points. The static and dynamic analysis adopted by Yin and Su, [ 16 ] show that house prices and economic growth have a significant mutual promotion effect. Even household expectations of rising housing prices can increase household consumption expenditures, thereby promoting economic growth [ 17 ].…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of housing prices and land financing on economic growth: Evidence from Chinese 277 cities at the prefecture level and above

Sun,

Javeed,

Tang

et al. 2024

PLoS ONE

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With the rapid progress of urbanization in China, the real estate industry, characterized by a long industrial chain, has become a pillar industry for economic development. Therefore, we inspect the nexus between land finance, housing prices, and economic growth. For this purpose, we use the panel data of 277 cities at the prefecture level or above in China from 2011 to 2019, and empirically examine it by using the Panel Vector Auto Regression (PVAR) model. The results show that there is a causal relationship between housing prices and economic growth. Housing prices promote economic growth in the short term and inhibit it in the long term. Both economic growth and housing prices have a significant impact on land finance. The economic growth show a significantly positive impact, while housing prices promote land finance in the short term with a long-term trend from positive to negative. This is the first study that tries to probe the relationship between urban housing prices, land finance, and economic growth by considering 277 prefecture-level and above cities in China. To promote the stable development of the regional economy, local governments need to overcome their dependence on the housing market and land finance and promote the healthy development of the housing market.

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Section: Literature Reviewmentioning

confidence: 99%

The impact of housing prices and land financing on economic growth: Evidence from Chinese 277 cities at the prefecture level and above

Sun,

Javeed,

Tang

et al. 2024

PLoS ONE

View full text Add to dashboard Cite

show abstract

“…Second, after the financialization of real estate, due to its high entry barrier, the wealth gap between those who do not acquire property and those who own property will widen more and more. With the rapid rise in housing prices, those who have a home can rapidly increase their assets even if they do not work hard, while those who do not have a home can hardly keep up with the growth of housing prices even if they work hard, so that the poverty gap will increase with the rise in housing prices [30]. This poverty gap in a city makes the migrants not see the possibility of class mobility, which affects the social and economic status and social mentality of the migrants and reduces the migrants' settlement intentions.…”

Section: Theoretical Analysis and Research Hypothesesmentioning

confidence: 99%

Local Government’s Land Finance Dependence and Migrants’ Settlement Intentions: Evidence from China

Zhang

2023

Land

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In the context of China’s new urbanization construction, it is crucial to deal with the issue of migrants. While land finance, as an essential means of local government financing in China over the past three decades, has made important contributions to China’s economic growth, the impact of land finance on the settlement intentions of migrants still needs to be studied. This study considered cross-sectional data containing 78,642 samples based on the 2017 China Migrants Dynamic Survey 2017 (CMDS) and China Land and Resources Statistical Yearbook. In addition, a binary choice model was constructed, and the impact of the degree of land finance on the settlement intentions of migrants for the prefecture-level cities in China was empirically analyzed. With the help of the mediating- and moderating-effect models, the impact of the degree of land finance on the settlement intentions of migrants was examined from the perspectives of housing pressure, social security, and housing property rights. The results show the following: (1) The higher the degree of land finance, the lower the settlement intentions of migrants. (2) Land finance’s effect on settlement intentions is stronger for urban domiciles, low-skilled laborers, in large cities, and eastern and southern cities in these samples. (3) The higher the degree of land finance, the greater the housing pressure on the migrants, further reducing the settlement intentions of these individuals. However, social security and homeownership can reduce the negative effect of land finance on the settlement intentions of migrants. This paper provides policy implications for the construction of new urbanization and the realization of modernization.

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“…Rising housing prices not only pose risks to price stability (Bernanke & Gertler, 2001), but also contribute to deepening wealth (Wind et al 2019) and consequently income inequalities. The 'wealth effect' (Yin & Su, 2022) leads to income growth and enhanced collateral positions for homeowners, further widening the wealth gap (Iyke, 2018). Given the pronounced disparities in income, education, healthcare, and household wealth in Serbia, understanding the forces governing the housing market is of particular significance.…”

Section: Introductionmentioning

confidence: 99%

Determinants of housing prices: Serbian Cities’ perspective

Marinković,

Džunić,

Marjanović

2024

J Hous and the Built Environ

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This study investigates the spatial and temporal dynamics of housing prices in Serbia, addressing the critical need to understand the drivers of real estate prices and their implications for economic and social welfare. Employing a panel data analysis approach on a unique dataset covering 24 distinct urban areas in Serbia from 2011 to 2021, we examine the relevance of diverse economic, demographic, and infrastructural indicators, providing novel insights within a developing country context. Our findings reveal that the housing market stock-flow model effectively predicts housing price appreciation trends, explaining over 60 percent of variation in property prices. Notably, disparities in labour income, captured by average wages and registered employment rates, emerge as significant determinants of real estate prices, underlining socio-economic disparities within Serbian cities. Housing prices exhibit a positive response to the population/housing stock ratio, suggesting higher prices in cities experiencing faster population growth relative to housing supply. Intensified construction is associated with elevated housing prices. Additionally, we find positive association between the inflation variable and housing prices, underlining real estate’s potential as an inflation hedge. Public service provision and infrastructural amenities also emerge as contributors to higher housing prices in urban areas, emphasizing the importance of comprehensive urban planning strategies. Our study contributes to the literature by providing specific quantitative evidence, advancing the understanding of urban housing market dynamics in developing countries. By offering nuanced insights into determinants of housing prices, our research informs policymakers and urban planners seeking to foster equitable and sustainable urban development strategies.

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Have housing prices contributed to regional imbalances in urban–rural income gap in China?

Cited by 6 publications

References 49 publications

The impact of housing prices and land financing on economic growth: Evidence from Chinese 277 cities at the prefecture level and above

The impact of housing prices and land financing on economic growth: Evidence from Chinese 277 cities at the prefecture level and above

Local Government’s Land Finance Dependence and Migrants’ Settlement Intentions: Evidence from China

Determinants of housing prices: Serbian Cities’ perspective

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