Demand for Urban Quality of Living in China: Evolution in Compensating Land-Rent and Wage-Rate Differentials

Posted: 22 Oct 2008

See all articles by Siqi Zheng

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

Yuming Fu

National University of Singapore

Hongyu Liu

Tsinghua University - Institute of Real Estate Studies

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Date Written: October, 20 2008

Abstract

The rapid pace of urbanization and income growth in China in the past decade, spurred in part by the liberalization of the urban housing and labor markets, resulted in considerable growth in urban land rents and wage-rates. The objective of this study is to examine the influence of urban quality of living, comprising social and environmental amenities, on the evolution of cross-city land-rent and wage-rate differentials in China. We employ the household data from the 1998 and 2004 Urban Household Survey (UHS) to compute the intercity land-rent and wage-rate differentials, inferring the rent growth in individual cities from a household housing consumption demand equation as home values were not reported in the earlier UHS. Our findings show a strong increase urban residents' willingness to pay for local amenity qualities between 1998 and 2004.

Keywords: quality of living, urban land rent, urban wage rate, labor mobility

Suggested Citation

Zheng, Siqi and Fu, Yuming and Liu, Hongyu, Demand for Urban Quality of Living in China: Evolution in Compensating Land-Rent and Wage-Rate Differentials (October, 20 2008). Journal of Real Estate Finance and Economics, Vol. 38, No. 3, 2009. Available at SSRN: https://ssrn.com/abstract=1287366

Siqi Zheng (Contact Author)

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/

Yuming Fu

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

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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