Proceedings of the 2024 3rd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2024)

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The Impact of Housing Prices on the Upgrading of Consumption

Authors
Xibei Wang1, *
1Faculty of Arts and Social Sciences, The University of Sydney, Sydney, 2006, Australia
*Corresponding author. Email: xwan0311@uni.sydney.edu.au
Corresponding Author
Xibei Wang
Available Online 19 December 2024.
DOI
10.2991/978-94-6463-598-0_15How to use a DOI?
Keywords
Consumption Behavior; Consumption Upgrading; Wealth Effect; Crowding-out Effect
Abstract

This paper examines the relationship between urban residents’ consumption behavior and rising housing prices in China, focusing on how changes in housing prices affect consumption upgrading through the wealth effect and crowding-out effect. By synthesizing historical data and literature, this study reveals the impact of housing price fluctuations on residents’ purchasing power and wealth perception, and their changes in consumption patterns. Results indicate that in cities with higher incomes, rising housing prices may promote consumption upgrading through the wealth effect; however, in cities with lower incomes, high housing prices primarily suppress residents’ consumption capacity through the crowding-out effect, especially concerning non-essential goods and quality-of-life services. The paper also explores the housing price-to-income ratio in China compared to developed countries and offers policy recommendations based on the current real estate market conditions. This research provides valuable data support for policymakers and points out new directions for future studies on housing prices and consumption behavior.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2024 3rd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
19 December 2024
ISBN
978-94-6463-598-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-598-0_15How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Xibei Wang
PY  - 2024
DA  - 2024/12/19
TI  - The Impact of Housing Prices on the Upgrading of Consumption
BT  - Proceedings of the 2024 3rd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2024)
PB  - Atlantis Press
SP  - 126
EP  - 134
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-598-0_15
DO  - 10.2991/978-94-6463-598-0_15
ID  - Wang2024
ER  -