Does housing unaffordability crowd out elites in Chinese superstar cities?

Jie Chen, Mingzhi Hu and Zhenguo Lin

Journal of Housing Economics, 2019, vol. 45, issue C, -

Abstract: With prices soaring in Chinese superstar cities (i.e., Beijing, Shanghai, Guangzhou and Shenzhen), housing is becoming increasingly unaffordable. This paper investigates whether housing unaffordability crowds out elites in Chinese superstar cities. Using both micro- and macro-level data from China's Urban Household Survey and China Statistical Yearbook for Regional Economy, we find that, in general, elites still prefer superstar cities. However, there is evidence that the attractiveness of superstar cities has declined over time. In addition, we find that the next-tier cities (i.e., alternative cities) become increasingly attractive to elites. These findings provide strong evidence of the crowding out effect on elites in Chinese superstar cities due to their housing unaffordability.

Keywords: Housing price; Crowd out; Elites; Superstar cities; Alternative cities (search for similar items in EconPapers)
JEL-codes: J61 R23 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:45:y:2019:i:c:3

DOI: 10.1016/j.jhe.2018.03.003

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