Does Housing Unaffordability Crowd Out Elites in Chinese Superstar Cities?

45 Pages Posted: 22 Mar 2018

See all articles by Jie Chen

Jie Chen

Shanghai University of Finance and Economics

Mingzhi Hu

School of Economics, Jinan University

Zhenguo (Len) Lin

Florida International University (FIU) - Hollo School of Real Estate

Date Written: March 18, 2018

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, Elites, Superstar cities

JEL Classification: R23, J61

Suggested Citation

Chen, Jie and Hu, Mingzhi and Lin, Zhenguo, Does Housing Unaffordability Crowd Out Elites in Chinese Superstar Cities? (March 18, 2018). Journal of Housing Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3143154

Jie Chen

Shanghai University of Finance and Economics ( email )

Shanghai, AK Shanghai 200433
China
00862165908835 (Phone)

Mingzhi Hu

School of Economics, Jinan University ( email )

Huang Pu Da Dao Xi 601, Tian He District
Guangzhou, Guangdong 510632
China

Zhenguo Lin (Contact Author)

Florida International University (FIU) - Hollo School of Real Estate ( email )

Miami, FL 33199
United States
3057799248 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
24
Abstract Views
303
PlumX Metrics