Abstract
This paper examines the future dynamics of the relative housing price-toincome 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.
| Original language | English |
|---|---|
| Pages (from-to) | 159-196 |
| Number of pages | 38 |
| Journal | Annals of Economics and Finance |
| Volume | 23 |
| Issue number | 1 |
| Publication status | Published - 2022 |
| Externally published | Yes |
Bibliographical note
This work was supported by the Beijing Research Center of the thought on socialism with Chinese characteristics for a new era (19LLLJA001), the National Social Science Foundation of China (21BJL011), and the Program for Innovation Research at the Central University of Finance and Economics.Keywords
- Convergence
- Distribution dynamics
- Economic policy uncertainty
- Housing price-to-income ratio
- Mobility probability plot
