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By Deng Yusong, Research Team on “Major Issues Relating to the Development of Housing Market”, Institute of Market Economy, DRC

Research report No.20, 2017 (Total 5095) 2017-2-20

Abstract: In order to solve the severe problem of housing shortage after World War II, each country had taken housing construction as the main policy goal and paid attention to public housing construction. During the period from 1950 to 1970, the developed countries had experienced the largest scale of housing construction projects. Around 1970, with the realization of one home for one family in main developed countries, the housing market of these countries had transformed from a short supply period to a new phase in which supply could basically meet demand. As a result, the number of new housing construction projects began to decrease and the focus of public housing policy began to shift toward the improvement of living quality. Around 1985, the supply-demand picture in the housing market among developed countries became different and housing bubbles loomed up in some countries. The development process of housing market in developed countries indicates that a clear judgment of market performance needs to be based on an integrated understanding of the process of housing market development and economic development. The target of housing policy needs to be adjusted according to the changes in different housing market development stages and the short-term problems in housing market need to be addressed from a long-term and systematic perspective.

Key words: housing market, development stage, policy