Empirical Study on the Influence of the Rising Housing Price on Resident Consumption

This paper explored the impact mechanism of the rising housing price on household consumption. The mathematical model of relationship between consumption rate and housing price index was established, based on which a empirical test was studied. The results indicate that there is a long-term reverse co-integration relationship between these two variables, that is, the rising housing price has really being restrained the resident consumption to some extent. Thus it is necessary for government to control the housing price.