Population Ageing, Urbanization and Housing Demand

Abstract

Using overlapping generation model, we find that population ageing does restrain housing demand. Then, we use the panel data of China’s 31 provinces between 2002 and 2013 to confirm that ageing restrains housing demand, the process of urbanization does the opposite and maybe offsets the negative effect to some extent. At present, China should continue to focus on developing urbanization rapidly, especially focus on the population urbanization. In the process, the government should change its development ideas and increase the supply of public service for population ageing.