The Future Evolution of Housing Price-to-Income Ratio in 171 Chinese Cities

Xiaoguang Liu, Jian Yu, Tsun Se Cheong and Michal Wojewodzki
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Xiaoguang Liu: National Academy of Development and Strategy, Renmin University of China
Jian Yu: School of Economics, Central University of Finance and Economics

Annals of Economics and Finance, 2022, vol. 23, issue 1, 159-196

Abstract: This paper examines the future dynamics of the relative housing price-to-income ratio (RHPIR) in China. We find that the convergence in RHPIR will be more congregated in the non-center cities of city clusters, the cities from the eastern region, with a net outflow of population, and low economic policy uncertainty (EPU). The convergence clubs will emerge in the cities with a net outflow of population and from the central and northeastern regions. The center and the non-center cities of city clusters will converge to parallel affordability paths. We pinpoint the cities with precise ranges of RHPIR that require special attention from the policymakers aiming at convergence in housing affordability.

Keywords: Distribution dynamics; Mobility probability plot; Convergence; Housing price-to-income ratio; Economic policy uncertainty (search for similar items in EconPapers)
JEL-codes: D39 O18 P25 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2022:v:23:i:1:liuyucheongwojewodzki

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