Residential satisfaction of private tenants in China's superstar cities: The case of Shenzhen, China

Bo Li,Chi Jin,Sylvia J.T Jansen,Harry Van Der Heijden,Peter Boelhouwer

doi:10.1016/j.cities.2021.103355

Abstract

In recent years, Chinese housing policies have been shifting from encouraging homeownership toward developing the private rented sector, especially in the superstar cities. Nevertheless, what are the target groups and characteristics of private rental housing in Chinese superstar cities, and whether the private rental housing is capable of meeting private tenants' housing needs remain unclear. This paper attempts to bridge this gap from the tenant perspective by examining the determinants of private tenants' residential satisfaction. We argue that residential satisfaction should be examined within different submarkets. By adopting the Structure of Housing Provision thesis, we identified three main sub-sectors in China's superstar cities, i.e. urban village housing, commercial rented housing, and Long-term Rented Apartment (LTRA). Based on a questionnaire survey in Shenzhen, we examined the characteristics of the three subsectors and tenants living in each sub-sector. Furthermore, we evaluated whether the residential satisfaction levels varied significantly in different sub-sectors and the determinants of residential satisfaction in each sub-sector. The results of an ANOVA showed that tenants living in commercial rented housing and LTRAs were more satisfied than those living in urban village housing. The regression results showed that the determinants of residential satisfaction vary considerably among different sub-sectors. The results of this paper can be useful not only for the landlords to improve tenants' residential satisfaction but also for policy-makers engaged in private rental market development and urban renewal.

Highlights

China has become a country of homeowners since the Housing Re form in the 1990s
The results of an ANOVA showed that tenants living in commercial rented housing and Long-term Rented Apartment (LTRA) were more satisfied than those living in urban village housing
The results of this paper can be useful for the landlords to improve tenants’ residential satisfaction and for policy-makers engaged in private rental market development and urban renewal

Summary

Introduction

China has become a country of homeowners since the Housing Re form in the 1990s. According to the 2010 National Population Census, the homeownership rate reached 85% at the national level while only 11% of Chinese live in the private rented sector (National Bureau of Statistics, 2010). Reasons for the boom of private rental sector are multi-faceted and vary markedly across different nations and cities Researchers often attribute it to the unaffordable housing prices, rapid urbanization, increasing workforce mobility, and shortage of social housing (Hulse et al, 2019; McKee, 2012; Power et al, 2018). The unregu lated, profit-oriented private rental housing market has directly shaped the unhappy personal experiences of tenants in urban China (Nie, 2016). According to his interviews with tenants in China, many interviewees expressed their negative feelings about private renting, including “low quality and inconvenience”, “long-term financial loss”, “instability and insecurity”, and “a feeling of homelessness”

Methods

Results

Discussion

Conclusion