Correlation Between Urban Housing Price and Residents' Life in China

In recent years, the relationship between housing prices and residents' income in Chinese cities and urban differences have become an important issue affecting the well-being of life and the coordinated development of the region. This study focuses on the two-way relationship and socio-economic impacts between house prices and residents' lives in key cities and reveals the interaction mechanism between the two. Housing prices have a dual impact on residents' income, on the one hand, through the wealth effect, it enhances the asset valuation and consumption confidence of those who own a home; on the other hand, high housing prices have a significant crowding out effect on the homeless group and young families. In addition, rising commercial real estate rents push up business costs and inhibit the flow of talent to high-powered cities. Income growth is the basis of housing purchasing power, and the influx of income and savings into the real estate market under favorable policies is likely to push up housing prices in key cities in the short term. Studies have shown that high housing prices inhibit social consumption and quality of life through the crowding-out effect and significantly inhibit the willingness of young people to have children and settle in cities. The complex relationship between housing prices and residents' lives in Chinese cities has a profound impact on consumption structure, population mobility and urban demographics, and the dynamic relationship between housing prices and income needs to be balanced in the context of coordinated regional development.