Centralization or Suburbanization? A Multivariable Regression Analysis of Average Residential Housing Prices in Beijing

Aaron Kaiqiang Zhou

doi:10.54691/hb38s736

Authors

Aaron Kaiqiang Zhou York University, Toronto, L3H3R2, Canada

DOI:

https://doi.org/10.54691/hb38s736

Keywords:

Multiple linear regression, average residential housing price, decentralization, Beijing.

Abstract

In 1978 China initiated and implemented the Opening Up policy, thus accelerating the rural-to-urban migration in the country level. The research uses Beijing as an example to examine the relationship between average residential housing prices and three key influencing factors. Multiple linear regression was selected as the main methodology for the analysis. Results indicate that housing prices is negatively 0.044 associated with newly constructed residential units, positively 0.018 associated with total unemployment, and positively 0.530 associated with disposable income per capita. To compare, New York city was picked to demonstrate the value difference between China and US. It is recommended to Beijing with the strategy of suburbanization, satellite cities, and redistribution of educational and headquarters of business to rebalance.

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