Speaker: Zan Yang, Tsinghua University
Host: Dayong Zhang, Associate Professor, RIEM
Time: 14:30--16:00, Friday, Nov.14
Venue: H515 Yide Hall, Liulin Campus
Abstract: The correlation between housing price and consumption is important for understanding behavior of the economy and coping with implications of future developments. In China, accumulation of housing wealth of household is not effectively transmitted to their final consumption in the past two decades. It is discovered that sustainable increasing of household wealth and housing ownership rate are accompanied by decreasing consumption rate. We further found negative correlation between housing price-consumption for both the homeowners who have one unit and who have two units of housing. We put efforts to investigate this phenomenon in China by capturing the dual nature of housing as consumption goods and investment vehicle from both theoretical and empirical perspectives. Increasing housing consumption demand rather than pure investment demand for second units is discovered in the paper. The roles of educational system, marriage market, elderly society as well as future housing market uncertainty are explored to explain the mechanism of household consumption behavior. The implications of government intervention on housing market are discussed.
About the speaker: Dr. Zan Yang is an associate professor in Hang Lung Center for Real Estate and Institute of Real Estate Studies, Tsinghua University. She received her PhD from Royal Institute of Technology in Sweden. Her research interest is real estate economics and urban economics.
