Housing affordability in the capital cities of three Northwestern China provinces

Abstract

Purpose Previous studies on housing affordability in China were concentrated in China’s coastal and central regions. The purpose of this paper is to investigate housing affordability of urban residents in Northwest China. Moreover, this paper attempts to understand the consistency and influencing factors of various indicators on the evaluation of housing affordability. Design/methodology/approach This paper uses multiyear data on house sales, residents’ incomes and living expenses from 2011 to 2022. House price-to-income ratio, housing affordability index and residual income approach were calculated by using these data and used as the measure of housing affordability. Findings The results show that there are obvious differences in the housing affordability among the Xi’an, Lanzhou and Yinchuan during 2011–2022, and the housing affordability of residents in cities with small population and economic scale is better. The ability of most urban residents to afford suitable housing is still poor, and the ability to afford small-sized housing is better. Most families with below-middle income have poor housing affordability. It is also observed that although various indicators had similarities in the evaluation of residents’ housing affordability, the comprehensive evaluation results of multiple indicators were more reliable. Social implications The research results provide a basis for the decision-making of the government’s urban housing policy and improvement of residents’ housing conditions. Originality/value The results have a clear understanding of the housing affordability of urban residents in Northwest China. The study found that the geographical location and topography of the city is also a factor affecting the housing affordability.