The Correlation between Housing Prices and Urban Base Surface: An Empirical Study

The study of the correlation between housing prices and urban base surface is of important theoretical and practical significance. Urban housing markets are classified using hierarchical clustering method first. Then the stepwise least squares regression method is adopted to estimate the parameters in the model of housing price related factors which include 21 indicators of urban base surface and other dummy variables of types. The results show that the balance of urban resident per capita savings, land prices, per capita GDP and residential costs are the significant related factors of housing prices, and Chinese urban housing markets are still in a development stage and far from stable.