Challenges facing housing affordability in Beijing in the twenty-first century

Abstract

Purpose – The purpose of this paper is analyse to what extent the high price had led to low levels of housing affordability in the period 2002-2006 in Beijing. Due to the importance of housing for local residents and the crucial position that real estate market in the Chinese economy is currently in, research into the housing affordability issues is now essential. It is important to consider the social circumstances that are predominantly related to both the standard of living and the national economy in Beijing. Design/methodology/approach – The housing price to income ratio (PIR) method and Housing Affordability Index (HAI) model are used to measure housing affordability in Beijing. Then, ..