What accounts for the migrant–native housing price distribution gap? Unconditional quantile decomposition analysis in Guangzhou, China

Abstract

Unlike previous studies that have focused on the challenges of migrants in acquiring home ownership, this study aims to investigate differences in housing consumption and preferences between migrant and native owners. The hedonic price and unconditional quantile decomposition models were constructed using transaction data in Guangzhou from 2014 to 2016. The study first discovered that migrant–native segments exist in the low-end, mid-end, and high-end markets. Second, the price gap was decomposed into a characteristic gap and a coefficient gap, corresponding to quantitative and qualitative differences in housing attributes or services consumed by the two groups, respectively. The characteristic gap is the main cause of the total price gap; that is, migrants consume more housing attributes than natives. The coefficient gaps make little or no significant contribution to the gaps. Third, migrants place more emphasis on structure and location attributes, while natives consume more urban and natural amenities, especially schools and hospitals. Although there are a growing number of migrant homeowners in host cities, their migration status leaves them with limited access to social services in the city. The results reveal not just disparities in housing preferences among groups but also differences in the usage of social welfare and public services. Moreover, a thorough assessment of consumer demands provides an essential reference for urban planning and project development.