The Influence of Housing Policy on People's House Buying - A Case Study of China

Abstract

This research examines the influence of housing policy on individuals' decisions to purchase houses in China. The study considers various factors, including disposable income, GDP, national property tax, and the urban registered unemployment rate, and analyzes their impact on housing purchase decisions through regression analysis. The findings indicate that disposable income is the primary driving factor behind the decision to buy a house in China. Higher per capita disposable income among urban and rural residents reflects increased financial capability, leading to a greater propensity to purchase houses. Moreover, an increase in GDP demonstrates a positive influence on housing purchase decisions, as economic growth and higher income levels correspond to increased willingness to buy houses. However, the introduction of national property tax has shown a certain negative impact on the decision to buy a house, potentially due to the increased cost associated with purchasing a property. Notably, the relationship between the urban registered unemployment rate and housing purchase decisions remains less clear. Overall, these findings contribute to a better understanding of the role of housing policy and various socioeconomic factors in shaping people's decisions to buy houses in China.