Nonlinear Influence of Public Services on Urban Housing Prices: A Case Study of China

Lei Gan,Weiguang Cai,Kun Wu,Hong Ren,Weimin Xiang

doi:10.3390/land10101007

Lei Gan, Weiguang Cai + Show 3 more

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https://doi.org/10.3390/land10101007

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Abstract

Owing to China’s rapid urbanization and internal migration, public services are unevenly distributed in cities, affecting urban housing prices. This study examines the dynamic effect of China’s public service levels on urban housing prices. We used the entropy method to calculate the public service index of 30 cities in China and a panel threshold regression model to explore the relationship between urban public service levels and housing prices. We found that the degree of the effect of public service levels on urban housing prices varies with the per capita disposable income of urban residents, demonstrating an inverted U-shaped curve. The role of public services in promoting urban housing prices increases with the increase in the level of urbanization. When the level of urbanization exceeds its threshold, the enhancement effect increases. These results help us better understand the theories of housing price changes in Chinese cities and support policymakers in formulating effective control measures for the housing market.

Highlights

Public services refer to the basic products and services related to the survival and development of residents, such as compulsory education, basic medical care, public infrastructure, and environment sanitation [1]
This study uses a panel threshold model to explore the mechanism of dynamic effects of public services and housing prices at the city level in China
The results of the study show that public services and urban housing prices are heterogeneous at different income levels and urbanization development stages

Summary

Introduction

Public services refer to the basic products and services related to the survival and development of residents, such as compulsory education, basic medical care, public infrastructure, and environment sanitation [1]. These services meet the characteristics of publicity and require the participation of the government. The distribution pattern of public service facilities promotes the formation and evolution of urban housing prices by influencing residents’ house purchase intentions. The premium effect of public service levels in the housing market further promotes competition among different social groups and exacerbates spatial inequality in China’s housing market. Achieving equalization of public service levels plays a very important role in coordinating the coordinated development of urban and rural areas and regions

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Discussion

Conclusion