Search Results
Journal Article
Was China's Housing Boom a Bubble?
This article investigates the factors influencing nationwide and city-level house price trends in China during the 2000s and early 2010s, considering the country’s significant structural transformation and urbanization. The analysis reveals that "fundamental forces" effectively explain house price appreciation at the national level and in most cities, with Beijing and Shanghai being notable exceptions. Income growth is the primary driver of rising house prices, while population growth also plays a significant role. However, in many cases, the impact of population growth on house prices is ...
Working Paper
Rural-Urban Migration, Structural Transformation, and Housing Markets in China
This paper explores the contribution of the structural transformation and urbanization process in the housing market in China. City migration flows combined with an inelastic land supply, due to entry restrictions, has raised house prices. This issue is examined using a multi-sector dynamic general-equilibrium model with migration and housing market. Our quantitative findings suggest that this process accounts for about 80 percent of urban housing prices. This mechanism remains valid in an extension calibrated to the two largest cities where housing booms have been particularly noticeable. ...