Abstract
Based on 465 panel data from 31 provinces, autonomous regions, and municipalities in China from 2001 to 2015 (data come from “China Statistical Yearbook”), static and dynamic panel models were established by Stata16.0 software to analyze the impact of housing rent on household consumption. In order to explore the specific impact of rising housing rents on residents’ consumption, and then adjust housing policies to stimulate consumer demand, this article analyses three research topics: (a) the impact of rising housing rent on the overall consumption level of residents and whether there are regional differences; (b) the internal mechanism underlying the effect of rising housing rent on residents’ consumption; and (c) the different impacts of rising housing rent on different types of residents’ consumption by establishing fixed-effects and random-effects models. The results show that a rise in housing rent causes a wealth effect on residents’ consumption at the national level in all regions. The upgrading of the industrial structure plays a positive role in the relationship between the fluctuation in housing rent and residents’ consumption, that is, the more rational the industrial structure, the stronger the wealth effect of rising housing rent on residents’ consumption. The rise in housing rent positively affects residents’ daily necessities and services consumption; transportation and telecommunication consumption; education, culture, and entertainment consumption; and habitation consumption; while negatively affects food, tobacco, and alcohol consumption; clothing consumption; and other supplies and services consumption. However, the impact on health care consumption is not significant. Accordingly, the government should start by improving the housing rental market and reasonably promote the further development of the housing rental market, thereby further stimulating Chinese consumption level.
Highlights
As one of the twin engines of the housing supply system, the development of the rental housing market is an important strategic measure for solving the housing problems of lowincome households
The average housing rental price index is 141.27, which indicates that the housing rental price has increased steadily in the past 15 years
The average housing rental price index is very close to the median of 134.46, the maximum value is 262.04, and the minimum value is 96.00
Summary
As one of the twin engines of the housing supply system, the development of the rental housing market is an important strategic measure for solving the housing problems of lowincome households. Since 2015, the relevant departments of the Chinese government have issued a number of policy documents, such as “Guidance on accelerating the cultivation and development of housing rental market” (2015), “A number of suggestions on accelerating the cultivation and development of the housing rental market” (2016), “A pilot programme to use collective construction land to build rental housing” (2017), and “Notice on the participation of insurance funds in the long rent market” (2018). The aim of these documents is to promote the reform of the housing system, to promote the formation of a selection mechanism between housing rental and housing. The contradiction between the supply and demand in the rental housing market can cause abnormal fluctuations in housing rent, which can affect people’s behavior and decisions
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