Rural residential properties in China: Land use patterns, efficiency and prospects for reform

Rural residential land represents one of the most important land use types in China. However, the literature so far has paid insufficient attention to the patterns and efficiencies of this type of land use. To fill in this gap, this paper uses a national survey to analyze the institutional setups for rural residential land use, to assess the effectiveness of existing regulations, and to evaluate the efficiencies in rural residential land use. Farmers’ subjective receptiveness toward rural residential property regulation reform is also investigated. We find that rural residential properties are inefficiently utilized under the existing land use regulations, that those who are younger and who had previous migration experiences are more likely to support the free trading of rural residential properties while the village cadres are more likely to oppose it. A coordinated policy reform package that includes free trading of rural residential properties and Household Registration System to facilitate permanent migration out of the countryside is proposed to address the existing efficiencies in China’s rural residential land use.

► Rural residential land is an important land use type in China.
► Under existing regulations rural residential land is inefficiently used.
► A coordinated land-Hukou reform package is needed to address the inefficiency.