An Empirical Study on the Relationship between Real Estate Price and Residents' Income Gap

In recent years, housing prices and urban residents' income gap is almost simultaneous in China. This paper selects the data of average national commercial housing price and Gini coefficient of urban residents from 1990 to 2010, and constructs the VAR model of the real estate price and the urban residents' income gap, through using unit root test, E-G two step co-integration test, Granger causality test and some other methods, to make an empirical analysis of the interaction between real estate price and income gap of urban residents. The results show that real estate price have a positive impact on residents' income gap, the rising house prices increase the polarization between rich and poor; real estate price is the Granger cause of residents' income gap; residents' income gap also have certain influence on real estate price, they are interactional relationship.