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Recent literature has widely discussed how housing price is linked to consumption and tenure choices, while tended to ignore that consumption and tenure choices are inter-correlated. This study employs the simultaneous equation model to explore how the housing purchase intention affects the non-housing consumption, considering the role of housing market sentiment. The result shows, on average, the housing purchase intention is associated with higher non-housing consumption, and a higher sentiment magnifies this positive relationship. Housing price level and growth decrease the household's enthusiasm of purchasing a new house, while sentiment is positively related to the housing purchase intention. Renters' behavior is less likely be affected by sentiment. In addition, the heterogeneous analysis indicates that households face a trade-off between housing and certain kinds of commodities. This study has some significant, practical implications on optimizing households' wealth allocation, implementing housing policy and improving the social welfare. [ABSTRACT FROM AUTHOR]

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The article provides findings for China that are consistent with the studies that document a negative relationship between the cost of housing and fertility. Although some studies have questioned the negative relationship between housing market prices and fertility, overall the evidence from this large sample study in China suggests that the original interpretation of a negative relationship is still viable. The research uses data from the China Household Finance Survey between 2013 and 2017 to show that there is an approximately 0.94-percentage-point decrease in the probability of having a child under two with a 1 percent increase in housing prices. The article provides instrumental models to account for endogeneity. The results are robust across city levels and by wife's age. The negative effect is significant in the thirty-five large cities in China but not significant for other smaller cities. [ABSTRACT FROM AUTHOR]

There is a growing research literature which focuses on inequality in Chinese cities, and in particular on housing inequality. These studies point to the gap between incomes and house costs but unlike the US and Europe where home ownership has declined especially for young adults, the same is less true in China. How can we understand continuing high levels of ownership in China when the gap between incomes and housing costs is so large and housing affordability is now as common in cities in China as it is in European and North American cities? The paper explores the income housing cost disconnect nationally and in the very large "superstar" cities of China. Previous studies of inequality and the role of housing affordability have documented the nature of affordability and inequality. We extend that research by using individual data from the China Household Finance Survey to unpack the nature of housing outcomes across categories of income and house value as a measure of housing costs. The paper analyzes who owns, and how it varies across categories of income and housing value. Our analysis shows that there are strong relationships between education, employment, and position in the housing market. We also confirm that parental inputs, the structural role of hukou status, and access to the housing provident fund continue to play important roles in the gaps between incomes and housing values. The research documents these relationships at the national level and across the Chinese "superstar" cities. • There is a gap between house values and incomes. • Younger, highly educated households, live in higher value houses. • Parental transfers are important for the ownership trajectories of younger households. • Hukou continues to play a role in housing access. • The Housing Provident Fund creates differential access to the housing market. [ABSTRACT FROM AUTHOR]