This short note defines a new measurement of housing affordability in terms of permanent income. Using this new measurement, we find that housing affordability in China is very strong relative to other developed economies, although the ratio of housing prices to current income in China is much...

The urban-rural disparity is a common phenomenon in most developing economies. In particular, this disparity is strengthened by the household registration (Hukou) system in China. Chinese economy, as well as its income inequality, rose dramatically in last decades. Most researches show that...