Abstract
In this paper, we apply the model of the extended linear expenditure system to measure housing affordability of urban households in Beijing, and calculate the affordable housing areas of urban households which are on different income levels in Beijing in 2014 and 2004. In this study, we find that, the household disposable incomes of urban households in Beijing increase along with the development of economy, all income levels of urban households in Beijing can cover the expenditures of their basic life needs, and housing affordability of urban households of different income levels in Beijing is increasing as well. The increasing disposable incomes enhanced the housing affordability of urban households in Beijing from the year 2004 to the year 2014, and all income levels of urban households in Beijing have improved their housing conditions. However, from the view of the affordable housing squares, their housing conditions depend on the housing price closely. If the growth of house price is faster than the growth of housing affordability, the affordable housing squares will decrease, and the housing condition of urban households in Beijing will be worse from 2004 to 2014. And the comparison between 2013 and 2014 shows the housing affability problem has been relieved.
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