The Analysis of Housing Consumption

Abstract

This paper reveals generating mechanism and reasons of housing consumption by analyzing potential demand and the effective demand. Based on defect analysis of house price-to-income ratio and factors of influencing housing affordability, this paper puts forward the establishing method and process of resident housing affordability index. Finally, in order to keep the housing prices in a reasonable range and active the consumption of the urban residents, the corresponding measures and suggestions are put forward based on present residents housing affordability.