Residential choices in an evolving market economy: moving and staying in Beijing

Abstract

ABSTRACT In four decades, China has transitioned from a controlled housing economy to one in which choices (and constraints) are more central drivers of residential change, although government roles in inner area clearance and redevelopment also play a powerful role in residential change. In this paper, data from the China Household Finance Study – Beijing Survey are used to show that while age, education, marital status and tenure have become important variables in the decision to move, residential mobility has Chinese characteristics. Additionally, while choice and opportunity now play important roles in when people move and where, many in poor-quality housing have low likelihoods of moving. There is a growing bifurcated outcome where those with resources move into commodity housing, while others are relegated to poor-quality housing built before the housing market reforms. The process may increase inequality in Beijing.