Building Cascaded Hierarchical Real Estate Market Based on the Housing Consumption Theory and the Security Theory

Abstract

The excessively high price not only has adverse impact on the development of the entire national economy, what’s more, it goes against the settlement of livelihood problems and the construction of harmonious society. To solve the current high price’s dilemma, it should combine the local real income levels of China, and perfect market structure according to the effective housing demands, then build up three high, middle and low real estate markets with independent operation, and mutual connection and conversion, in order to control the house prices, realize the basic needs of social housing, and solve the housing problems of urban residents.
Key words: Housing theory; Effective demand; Real estate market