Privatization, housing conditions and affordability in the People's Republic of China

Abstract

Currently, the subject of housing in China is of interest to many researchers, since improvements in living conditions have not kept pace with the territory's economic growth. This paper describes basic housing situations in urban China, and assesses these conditions against the likely benefits its people may enjoy as a result of overall economic improvement over time. Housing affordability in China is a pressing social and economic issue, particularly for populations that are marginal to the housing market. This is due to affordability constraints as a result of the limited participation in key economic activities that restrict the marginalized groups from accessing the housing market. The persistent affordability crisis is discussed in this paper, which focuses especially on the accessibility restriction of potential homeowners to the private housing market. Furthermore, the paper explores the reasons behind homeownership constraints, and reviews government policies to seek alternative solutions to China's housing problems. © 2007 Elsevier Ltd. All rights reserved.