Abstract
The rapid development of urban rail transit system leads to the rising land rent and housing rent along the rail transit line. In order to respond to housing demand for low-income households, the public rental housing policy came into being. Public rental housing, with the advantage of lower rent than commercial housing, has become the primary choice for low-income households. However, the preset location of public rental housing is usually in the suburbs, separating the workplace and residence, which increases in travel cost. Consequently, it is particularly necessary to study the effect of public rental housing on the utilities of heterogeneous households from the perspective of transportation, and an equilibrium model of housing choice for heterogeneous households under public rental housing policy has been suggested in this paper. The result shows that the change in average operating speed of the rail may lead to the difference in urban residential formation and the increased speed of the rail may not be able to eliminate the location disadvantage of public rental housing. Furthermore, we find that ultra-limit public rental housing with the remote location is detrimental for low-income households. The model explicitly considers the interaction among the government, property developers, and heterogeneous households in the housing market, and can be utilized as an instruction for the future sustainable development of public rental housing.
Highlights
With the fast growth of the economy and the continuous promotion of the urbanization, traffic congestion is increasingly prominent
Studies In order to achieve stable, healthy, and sustainable development of the housing market, the public rental housing policy has been adopted by the government
As the indemnification housing policy, the public rental housing policy plays an important role in alleviating the housing pressure of low-income households and promote the sustainable development of the housing market
Summary
With the fast growth of the economy and the continuous promotion of the urbanization, traffic congestion is increasingly prominent. Public rental housing can provide affordable housing for low-income households, and alleviate the continuous increase in commercial housing price, which can promote the sustainable development of the urban housing market. It is regarded as one of the most effective measures to solve this problem [3]. The model assumes that households choose housing location to maximize their utilities On this basis, Ding constructed a static monocentric urban model to analyze the impacts of disposable income, residential location and travel cost on housing rental price and floor space in spatial equilibrium [7].
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