An empirical study on relationship between population immigration and urban housing market

Fen Jie Long, Ming Liu, Ming Fang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Since the natural growth rate of Chinese urban population is under effective control, migration has become the major cause of the changes of urban population. Population immigration would largely increase the demand of housing; meanwhile high housing price would also restrain immigration. At present population migration in China mainly falls into the spontaneous migration, and the first motivation of migration is to increase income. According to academic study, transferred-in population has a strong demand of housing and considerable purchase power. The absorption rate of transferred population by housing stock is relatively low, which means their demand of housing is generally satisfied by the increment market. According to empirical study, in short run, change of housing increment is largely decided by the volume of migration and housing completion of the previous year, which shows the lag of demand impact and the inertia of housing construction; from a long-term equilibrium perspective, housing completion and volume of immigration presents a positive correlation, and presently population migration affects the housing increment market mostly in the form of short-term fluctuations. On the other hand, living cost and the quality of life are the major consideration for people when make decisions of migration, and presently housing price is the chief cost for urban residents. Quantitative analysis of the impact factors of migration on a database of 35 major cities reveals that population immigration is not significantly restrained by housing price. The result of this research would theoretically be helpful for understanding the relationship between population immigration and housing market, and practically helpful for local governments to make population and housing policy which assorts with urban development.

Original languageEnglish (US)
Title of host publicationProceedings of CRIOCM 2006 International Research Symposium on Advancement of Construction Management and Real Estate
EditorsMing-Xuan Yu, Lin-Ling Duan, Zhen-Yu Zhao, Chang-Chun Feng
PublisherChinese Research Institute of Construction Management
Pages709-718
Number of pages10
ISBN (Electronic)9623675364
StatePublished - Jan 1 2006
Externally publishedYes
EventInternational Research Symposium on Advancement of Construction Management and Real Estate, CRIOCM 2006 - Beijing, China
Duration: Nov 3 2006Nov 5 2006

Publication series

NameProceedings of CRIOCM 2006 International Research Symposium on Advancement of Construction Management and Real Estate
Volume2

Other

OtherInternational Research Symposium on Advancement of Construction Management and Real Estate, CRIOCM 2006
Country/TerritoryChina
CityBeijing
Period11/3/0611/5/06

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Urban Studies
  • Architecture
  • Business and International Management
  • Building and Construction

Keywords

  • Effective demand
  • Housing market
  • Panel data
  • Population immigration

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