Population Growth Across Chinese Cities: Demand Shocks, Housing Supply Elasticity and Supply Shifts

26 Pages Posted: 1 Jul 2008

See all articles by Yuming Fu

Yuming Fu

National University of Singapore

Siqi Zheng

Massachusetts Institute of Technology (MIT) - Center for Real Estate; Massachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning; Hang Lung Center for Real Estate, Tsinghua University

Hongyu Liu

Tsinghua University - Institute of Real Estate Studies

Date Written: May 1, 2008

Abstract

The population growth of a city is constrained by its housing supply. The growth occurs if the housing supply is elastic in response to urban demand shocks, if the supply shifts out, or if per-capita housing demand decreases. We use this framework to examine the growth of 85 Chinese cities between 1998 and 2004, focusing on the determinants of the supply elasticity. Both the supply shifts and the elasticity are major sources of cross-city variations in growth. The elasticity depends on the availability of infrastructure, the cost of redevelopment, and the income inequality in the city, but not on population density.

Keywords: Housing supply elasticity, Urban growth, Demand shocks, Housing policies

JEL Classification: R11, R31, R58

Suggested Citation

Fu, Yuming and Zheng, Siqi and Liu, Hongyu, Population Growth Across Chinese Cities: Demand Shocks, Housing Supply Elasticity and Supply Shifts (May 1, 2008). Available at SSRN: https://ssrn.com/abstract=1153022 or http://dx.doi.org/10.2139/ssrn.1153022

Yuming Fu (Contact Author)

National University of Singapore ( email )

4 Architecture Drive
Department of Real Estate
Singapore, 117566
Singapore
(65) 6874 7100 (Phone)
(65) 6774 8684 (Fax)

HOME PAGE: http://profile.nus.edu.sg/sde/rstfuym

Siqi Zheng

Massachusetts Institute of Technology (MIT) - Center for Real Estate ( email )

Building 9-323
Cambridge, MA 02139
United States

HOME PAGE: http://https://siqizheng.mit.edu/

Massachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning ( email )

77 Massachusetts Avenue
Cambridge, MA 02139
United States

Hang Lung Center for Real Estate, Tsinghua University ( email )

HeShanHeng Building
Beijing, 100084
China

HOME PAGE: http://https://siqizheng.mit.edu/

Hongyu Liu

Tsinghua University - Institute of Real Estate Studies ( email )

School of Civil Engineering
Beijing, 100084
China
8610-62795115 (Phone)
8610-62788678 (Fax)

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