The impact of privatization of public housing on housing affordability in Beijing: An assessment using household survey data

Abstract

Housing affordability has long been on the agenda of China’s policy makers. Imperfections in the housing system and growing disparities in income and wealth have been central to the problem of affordable housing. Housing reforms in China led to the creation of a market-oriented housing system, but also increased economic and social stratification. This article considers the effect of privatization of public housing on the problem of housing affordability in Beijing. We draw on a household survey to assess affordability for households according to occupants’ family structures, educational attainments and employment status, using a ‘residual income’ approach. The implications for policies designed to improve housing affordability are discussed.