Abstract
Using Eviews software, this paper makes an empirical analysis on the two kinds of factors that affect the housing price of 31 key cities in China: internal direct factors and external indirect factors, in order to reveal the reasons for the high housing price. A multivariate linear regression model was established in which the explanatory variables were land purchase price and residents’ disposable income, and the explanatory variables were the average selling price of residential commercial housing. The research shows that the land purchase price has a greater positive impact on the average selling price of residential commercial housing, compared with residents’ disposable income although also a positive impact but less impact.
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