Apartment Affordability among the Middle-Income Group in Urban China

Abstract

In the past few years, as the Chinese economy has surged and income levels have risen, there has been a notable uptick in the proportion of middle-income groups. According to the National Bureau of Statistics and other research reports, the proportion of China's middle-income group in the national population is increasing year by year, indicating that China is experiencing an expansion of the middle class. According to a report released by Renmin University of China, China's middle-income group will account for about 40 percent of the total population, or about 560 million people, by 2022. In this study, I will analyse the affordability of apartments for middle-income people in China from macro and micro perspectives. In most Chinese cities, the affordability of apartments for middle-income people has remained relatively stable. However, there are still some cities with serious affordability problems, such as Beijing, Xiamen, Shanghai and so on. The challenge of apartment affordability causes increased commute durations because of the divide between residences and employment areas, and it compels residents to utilize less space in their homes. Therefore, it is very valuable to explore the affordability of apartments for middle-income people.