The Estimation and Regional Comparison of the Price Elasticity of Housing Supply in China: Based on the Panel Data in 34 Cities

The lack of consideration to housing supply-side factors is the main cause for the frequent failure in the macro-control over the housing market in China. The housing supply elasticity manifests as the sensitivity of the housing supply change rate to the housing price change. Therefore, in the implementation of housing regulation policies, supply elasticity is an important consideration factor in the housing supply side. China's housing regulation and control policies are designed mainly based on the large long-term housing price elasticity. In this paper, panel data from 34 large and medium-sized cities was based to measure the housing supply elasticity in China, and find that China's housing market supply is generally inelastic. Moreover, the housing supply elasticity of each city was measured separately, and a regional comparative analysis was made to identify factors affecting the supply elasticity.