The Effects of Macroeconomic Factors on Housing Prices in China: Empirical Research and Linear Regression Analysis

DOI

10.2991/aebmr.k.201128.090How to use a DOI?

Keywords

Housing price, macroeconomics factors, empirical research, linear regression, data analysis, China real estate

Abstract

The housing market in China has experienced substantial development over the past years, and the macroeconomy carries considerable weight in driving the rapid increases in housing prices. This paper aims to study the relationship between the macroeconomy and housing prices in China, and analyze three typical macroeconomics factors, consisting with gross domestic product index (GDPI), consumer price index (CPI), and fixed asset investment price index (FAI), along with their effects on housing prices respectively. This paper uses aggregated annual data from 2010 to 2018 in a multivariate linear regression equation and reached a reliable conclusion with quantitative analysis. All three variables are positively related to housing prices, which is represented by commercial residential housing sales price. By model building and regression test, it is seen that the consumer price index is the variable with the most explanatory power for the housing price increase, followed by the gross domestic product index and fixed asset investment price index. The main content of this study also includes a brief review of the history of China’s real estate market under the proper control and policy interventions by government.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jiatong Li
PY  - 2020
DA  - 2020/11/30
TI  - The Effects of Macroeconomic Factors on Housing Prices in China: Empirical Research and Linear Regression Analysis
BT  - Proceedings of the 2020 2nd International Conference on Economic Management and Cultural Industry (ICEMCI 2020)
PB  - Atlantis Press
SP  - 471
EP  - 474
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201128.090
DO  - 10.2991/aebmr.k.201128.090
ID  - Li2020
ER  -