Relationship Between Housing Price and Income in China
DOI:
https://doi.org/10.54097/9ag0ff30Keywords:
housing prices, income distribution, price-to-income ratioAbstract
The average house price to income ratio of the 100 key cities in China monitored in 2022 is 12.4, which is lower than that in 2021. According to international standards, the housing price to income ratio is a rational range between 3-6 times, and China is 12.4 times, which is far higher than the international reasonable range. At the same time, China's house price to income ratio has continued to decline in recent years, and the level in 2022 will be lower than that in 2021. However, even so, China's house price to income ratio is still very high, especially in first-tier cities and hot second-tier cities. From the current situation, the real estate market can hardly be called "stable", whether it is to boost market confidence, or balance the ratio of house prices to income, it will take time. This paper starts with some background information to the housing market and income to demonstrate the negative conditions in both real-estate market and living conditions for Chinese citizens. Secondly, the relationship and the negative effect of these conditions are reviewed. Finally, how people's relative responses to difficulties create a new set of problems is shown.
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