Migrant household homeownership outcomes in large Chinese cities - the sustained impact of hukou

Abstract

Homeownership by migrant households in large Chinese cities is increasingly evident and sometimes blamed for driving up local housing prices. Hukou reform grants local hukou to migrants in small cities while it allows large cities to set up hukou entry barriers to control migration. This paper explores whether migrant households’ micro-level characteristics and macro-level urban policies relating to hukou reform have any impact on their housing tenure choices. Using data from a 2009 survey of migrant households in six large cities, this study adopts logistic regression models to examine factors influencing labor migrant households’ tenure decisions. We find that household income and head of household hukou type, contribution to pension fund, and enrollment in health insurance all positively predict homeownership. Migrant households are more likely to be found in cities with larger population size. We argue that city entry barriers create new forms of institutional haves and have-nots and new forms of inequality. The sustained impact of previous hukou types suggests inherited inequalities through intergenerational wealth transfer, which calls for targeted welfare policies to mediate.