A Study on the Relationship between Urbanization and Housing Price

摘要

many researchers agreed that the urbanization will result in the rise of the housing price in urban. This paper conducts an empirical analysis on the causality between the urbanization and the urban housing price through econometrics models including unit root test, cointegration analysis and Granger causality test based on a group of data about urbanization ratio and national average housing price from 1994 to 2004. The result indicates that the urbanization didn't lead to the rise of the Chinese urban housing price. Because of the administrative interference from Chinese government, many rural districts upgraded into city districts directly through changing the name of the administrative division, so the Chinese urbanization actually improved the general living condition of the urban, in addition, rural labor surplus immigrating into urban can't afford to the urban housing due to their low income, therefore they almost had no effects on the urban housing price.