Relationship between Life Consumption and Rural Housing Value in China

Housing value accounts for a remarkable proportion of total household wealth in rural China. There seems to be a general presumption that life consumption influence rural housing value. However, there is relatively little systematic data, other than anecdotal evidence, to support this. The model is confronted by data from the CHARLS. To test this presumption, this study uses details of living cost in rural China. In addition to the overall cost of living, it generates insights of rural housing development. The paper concludes with a brief implication for government to balance the two variables.