Administrative hierarchy, housing market inequality, and multilevel determinants: a cross-level analysis of housing pric
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Administrative hierarchy, housing market inequality, and multilevel determinants: a cross‑level analysis of housing prices in China Ronghui Tan1,4 · Qingsong He2 · Kehao Zhou3 · Yan Song4 · Hengzhou Xu1 Received: 2 July 2017 / Accepted: 25 June 2019 © Springer Nature B.V. 2019
Abstract Numerous studies have examined the determinants of housing prices in Chinese cities. However, most of them ignored the hierarchical structural characteristics of housing prices because of the use of ordinary least squares and hedonic pricing to model the housing prices for a single city. Therefore, this study explores the multi-level determinants of housing prices and their interactions at different levels. To this end, it proposes a three-level hierarchical linear model (HLM) using observations from 146,099 communities nested in 1120 counties of 31 provinces in China as a case study. The results of the hierarchical linear regression indicate significant variances in average housing prices. This finding suggests HLM to be appropriate when dealing with housing prices inherently nested at multiple geographic levels. Overall, housing values in China are not only determined by accessibility factors but are also driven by multi-level socioeconomic aspects. Among the selected variables, high-speed railway shows a significant positive effect, while ordinary railway shows a significant negative effect on housing values at the community level. At the county level, rural–urban migration and per capita living space have significant positive impacts on housing value. At the province level, the relationship between rural–urban migration and housing prices depends on economic development and urban employment. Similarly, the average wages of urban employment influence the relationship between per capita living space and housing prices. These results suggest that contextual effects exist between the determinants of housing prices at county and province levels. Keywords Housing prices · Multi-level determinants · Hierarchical linear model · China
1 Introduction Housing prices in major Chinese cities have recently experienced an exponential increase. Approximately 46 of the 70 large- and medium-sized cities have witnessed a price increase compared to the same month in the previous year, and 65 of these experienced a year-to-year increase as of April 2016 (National Bureau of Statistics of China * Ronghui Tan [email protected] Extended author information available on the last page of the article
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R. Tan et al.
2016). Unaffordable housing prices have attracted significant concerns from both scholars and the public, ranking first in the list of China’s social problems from 2007 to 2012 (Zhang and Tang 2016). As such, identifying an approach to curb booming housing prices became one of the most important social concerns for the central and local governments in China. Further, implementing an affordable and sustainable housing policy is a dilemma for the Chinese government. On one hand, tackling the problem of real estate surplu
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